Rite Aid 1Q profit drops on costs, revenue rises

Published on NewsOK Modified: June 19, 2014 at 8:57 am •  Published: June 19, 2014
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CAMP HILL, Pa. (AP) — Rite Aid's fiscal first-quarter profit dropped 55 percent as it dealt with higher-than-expected drug costs and reimbursement rate reductions.

Its earnings matched analysts' expectations, while revenue was slightly above of Wall Street's view.

For the period ended May 31, the nation's third-largest drugstore chain reported net income attributable to common stockholders of $41.4 million, or 4 cents per share. A year earlier it earned $91 million, or 9 cents per share.

Analysts surveyed by FactSet expected earnings of 4 cents per share.

Revenue for the Camp Hill, Pennsylvania, company climbed 3 percent to $6.47 billion from $6.29 billion mostly due to better sales at pharmacies open at least a year.

This beat Wall Street's estimate of $6.44 billion.

Sales at stores open at least a year rose 3.1 percent, while sales at pharmacies open at least a year increased 4.6 percent.

This figure is a key gauge of a retailer's health because it excludes results from locations recently opened or closed.