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.