Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  Rite Aid Corporation    RAD

Delayed Quote. Delayed  - 01/20 10:07:04 pm
7.22 USD   -16.05%
01/21 RITE AID, WALGR : Report
01/20 FTC NOT SOLD ON : Bloomberg
01/17 LEBANON PUBLIC : Jan. 13 to Jan. 17
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Rite Aid 4Q Loss Narrows Amid Sales Growth, Tax Benefit

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/12/2012 | 05:55pm CET

--Same-store sales improve for five straight quarters with rollout of loyalty program and renovated stores

--Rite Aid converted 280 stores into new wellness format in the latest quarter

--Shares decline as loss was greater than analysts expected and new fiscal-year outlook was tempered

(Updates the second through eighth paragraphs with details from Rite Aid's conference call and the latest stock quote and the 13th paragraph with more details on fiscal 2013 outlook.)

 
   By John Kell and Tess Stynes 
   Of  
 

Rite Aid Corp.'s (>> Rite Aid Corporation) fiscal fourth-quarter loss narrowed as the drug-store company benefited from an extra week of sales and a tax benefit in the latest period.

Shares fell 7 cents, or 4.1%, to $1.63 in recent trading Thursday as the chain's loss was greater than analysts expected and its view for the new fiscal year was tempered.

The No. 3 U.S. drug-store chain behind Walgreen Co. (WAG) and CVS Caremark Corp. (>> CVS Caremark Corporation) has posted losses since its 2007 acquisition of the Brooks and Eckerd chains that saddled it with debt just before consumers slashed spending. It has benefited from cutting costs and refinancing billions of dollars in debt, and the company has seen sales growth recently after a long stretch of declines.

Rite Aid's same-store sales have improved for the past five quarters as the company benefits from the rollout of a loyalty program and store renovations under a new format that expands clinical pharmacy services and offers more health and wellness products. Rite-Aid converted 280 stores into the new wellness format during the latest quarter, and, while still early in that process, President and Chief Executive John Standley said the effort was helping bolster front-end sales.

Standley told analysts during the company's conference call that enrollment in the Wellness+ loyalty program, which was launched in April 2010, has reached 52 million members and with two years of membership activity the drug-store chain has enough history and data to monitor active members who have used their cards at least twice in the last 26 weeks.

Rite Aid said those members accounted for 74% of front-end sales and 68% of prescriptions filled during the fourth quarter, compared with 66% and 58%, respectively, in the same period a year ago.

The company's effort to offer more flu immunizations, meanwhile, resulted in nearly 1.5 million flu shots administered in the latest fiscal year, more than double the prior year's total. That improvement came amid a mild cold and flu season that hurt the latest quarterly results from CVS and Walgreen.

Standley also noted a marketing campaign helped court customers forced to shift their prescriptions away from Walgreen after that drug-store chain exited from pharmacy-benefit manager Express Scripts Holding Co.'s (ESRX) network following a contract dispute. Roughly a third of Rite Aid stores are within a mile of a Walgreen location, and analysts have said the dispute will allow Rite-Aid and CVS to each gain market share.

For the quarter ended March 3, Rite Aid reported a loss of $161.3 million, or 18 cents a share, from a year-earlier loss of $205.7 million, or 24 cents a share. The latest period included $56.3 million in termination and impairment charges, along with a $24.2 million tax benefit, while the prior year included $154.1 million in charges and a small tax expense.

Analysts polled by Thomson Reuters most recently projected a loss of 14 cents.

Gross margin fell to 24.9% from 26.4%.

Rite Aid recently reported total drug-store sales of $7.12 billion, up 11% from a year earlier, mostly owing to an extra week of sales in the period. Same-store sales improved 3%, the drug-store chain's best showing in five years. Last week, Rite-Aid said that March same-store sales improved further, up 3.6%.

Looking to fiscal 2013, Standley said Rite Aid intends to remodel 500 stores into the wellness format and will focus on the Wellness+ program as the core component of the company's overall marketing and promotional efforts.

For the year, the company projected a per-share loss of 13 cents to 31 cents on revenue of $25.4 billion and $25.8 billion. Analysts polled by Thomson Reuters recently expected a loss of 25 cents and revenue of $25.74 billion. Rite Aid expects same-store sales growth of up to 1.5% over the just-completed fiscal year.

-By John Kell and Tess Stynes, Dow Jones Newswires; 212-416-2480; john.kell@dowjones.com

Stocks mentioned in the article : Rite Aid Corporation, CVS Caremark Corporation
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on RITE AID CORPORATION
01/21 RITE AID, WALGREENS MERGER PLAN HASN : Report
01/20 FTC NOT SOLD ON WALGREENS' PLAN TO W : Bloomberg
01/17 LEBANON PUBLIC RECORD : Jan. 13 to Jan. 17
01/13 RITE AID : scammer can't dodge date with prison cell, U.S. judge rules
01/12 RITE AID'S DAYS NUMBERED AS WALGREEN : reports
01/12 RITE AID : Foundation Welcomes New Year with New Class of KidCents Charities
01/11 RITE AID : Irvington Police Warn Local Business Owners Of Phone Scam Involving C..
01/11 RITE AID : Shopping center that houses Rite Aid's operational headquarters and D..
01/05 RITE AID : Management's Discussion and Analysis of Financial Condition and Resul..
01/05DJWALGREENS BOOTS CEO : No Plan B for Rite Aid Merger--Update
More news
Sector news : Retail - Drugs without Grocery
01/20 FTC NOT SOLD ON WALGREENS' PLAN TO W : Bloomberg
01/19DJRival to EpiPen Allergy Treatment to Return to Market--Update
01/19DJRival to EpiPen Allergy Treatment to Return to Market
01/18DJMCKESSON : to Pay $150 Million for Failing to Report 'Suspicious' Drug Orders --..
01/18DJMCKESSON : to Pay $150 Million for Failing to Report 'Suspicious' Drug Orders
More sector news : Retail - Drugs without Grocery
News from SeekingAlpha
01/20 After Hours Gainers / Losers
01/20 Drugstore investors scramble after FTC wildcard pops up
01/20 Midday Gainers / Losers
01/20 Rite Aid and Fred's plummet on word of FTC Walgreens deal review
01/19 Double-Digit Market Decline Possible In Near Future (Chris DeMuth)
Advertisement
Financials ($)
Sales 2017 32 585 M
EBIT 2017 552 M
Net income 2017 69,1 M
Debt 2017 6 989 M
Yield 2017 -
P/E ratio 2017 124,33
P/E ratio 2018 67,82
Capi. / Sales 2017 0,46x
Capi. / Sales 2018 0,24x
Capitalization 7 851 M
More Financials
Chart RITE AID CORPORATION
Duration : Period :
Rite Aid Corporation Technical Analysis Chart | RAD | US7677541044 | 4-Traders
Full-screen chart
Technical analysis trends RITE AID CORPORATION
Short TermMid-TermLong Term
TrendsBearishNeutralNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 6
Average target price 8,88 $
Spread / Average Target 19%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
John T. Standley Chairman & Chief Executive Officer
Kenneth A. Martindale President & Chief Operating Officer
Darren W. Karst SEVP, Chief Financial & Administrative Officer
Steve Rempel Chief Information Officer & Senior Vice President
Joseph B. Anderson Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
RITE AID CORPORATION-12.38%7 851
RAIA DROGASIL SA3.60%6 640
AIN HOLDINGS INC3.88%2 236
ORIOLA KD OYJ-0.23%834
AUSTRALIAN PHARMACEUTI..-2.91%740
ADCOCK INGRAM HOLDINGS..6.64%666
More Results