Rite Aid's December performance exceeds analyst consensus across front-end, pharmacy

CAMP HILL, Pa. — Rite Aid on Friday posted a December sales increase of 4.9% to $2.2 billion. Same-store sales were up 5.3% for the month — beating analyst consensus of 4.5% —  reflecting a 1.7% increase in front-end same-store sales and a 7.3% increase in pharmacy same-store sales. 

 

"The front-end comp of 1.7% outpaced consensus of 1.2% and represents the strongest 2-year trend since last January," noted Ed Kelly, Credit Suisse research analyst. "Flu-related OTC helped and Wellness remodels are likely a tailwind whose impact could ramp over time as a higher proportion of the store base is remodeled," he said. "The pharmacy comp beat as well, as sales rose 7.3% vs. consensus of 6.3%, although generic impact markedly decelerated sequentially due to the lapping of Cymbalta."

 

Prescription count at comparable stores increased 5.1% over the prior-year period. Prescription sales accounted for 64.8% of drug store sales, and third party prescription sales represented 97.6% of pharmacy sales. 

 

Same-store sales for the 43-week period ended Dec. 27, 2014 increased 4.3% over the prior-year period. Front-end same-store sales increased 1% while pharmacy same-store sales increased 5.9%. Prescription count at comparable stores increased 3.6% over the prior-year period. 

 

Total drug store sales for the 43 weeks period increased 3.9% with sales of $21.8 billion. Prescription sales represented 68.6% of total drug store sales, and third party prescription sales represented 97.5% of pharmacy sales.