Rite Aid reports Q2 results, lowers 2010 outlook

9/24/2009

CAMP HILL, Pa. Rite Aid reported its second-quarter financial results ended Aug. 29.

Rite Aid reported a 2.7% decrease in revenues to $6.3 billion for the 13-week second quarter. The company said the drop was a result of store closings and a decline in front-end same-store sales.

Same store sales for the quarter decreased 1.1% over the prior-year 13-week period, consisting of a 4.9% decrease in the front end and a 0.8% increase in pharmacy. The number of prescriptions filled increased 1.4%. Prescription sales accounted for 68.1 percent of total drug store sales, and third party prescription revenue was 96.3% of pharmacy sales.

Net loss for the quarter was $116.0 million, or 14 cents per diluted share, compared with last year’s second quarter net loss of $222 million, or 27 cents per diluted share.

In the second quarter the company opened 3 stores, relocated 10 stores, remodeled one store and closed 16 stores. Stores in operation at the end of the second quarter totaled 4,812.

Based on expectations for a continued weak economy with high unemployment negatively impacting front end sales along with increased pressure on pharmacy gross margins, Rite Aid has lowered its fiscal 2010 guidance.

Click here for the full financial results.

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