By Angela Chen
Rite Aid Corp. said its earnings surged in the quarter ended in
February thanks to a $1.72 billion tax credit, but the pharmacy
chain offered muted guidance for the recently started business
year.
Rite Aid is the nation's No. 3 drugstore chain by sales behind
Walgreen Co. and CVS Caremark Corp. and operates 4,750 stores
nationwide. Like other drugstore chains, Rite Aid has adjusted its
offerings in an effort to broaden its business model as the
pharmacy and drugstore industry expands into the health and
wellness sector.
For the current year ending February 2016, the company forecast
a per-share profit of 19 cents to 27 cents and sales between $26.9
billion and $27.4 billion, same-store sales up 2.5% to 4.5%.
Analysts had expected a per-share profit of 43 cents and revenue
of $27.19 billion.
Meanwhile, the company posted a profit for the quarter ended
Feb. 28 of $1.84 billion, or $1.79 a share, up from $55.4 million,
or six cents a share, a year earlier.
Revenue rose to $6.85 billion from $6.6 billion.
Analysts polled by Thomson Reuters expected revenue of $6.8
billion and earnings of seven cents for the quarter.
Rite Aid reported last month that sales at stores open at least
a year improved 4.5%, including growth of 2% in the front of the
store and an increase of 5.7% in the pharmacy business. The number
of prescriptions filled grew 3.5%. Prescription sales accounted for
68% of total drugstore sales, though it has been pressured by
competition from new generic drugs.
Shares edged up 1.3% to $8.80 premarket.
Write to Angela Chen at angela.chen@dowjones.com
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