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

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

Delayed Quote. Delayed  - 09/29 10:00:50 pm
7.57 USD   -1.94%
09/29 RITE AID : DreamShip Hot Air Balloon, Designed by Children of Americ..
09/28 RITE AID : How a pharmacy helped sons of late Air Force captain
09/27 RITE AID : Expands Naloxone Dispensing Program in Four Additional St..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

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 CEST

--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
09/29 Deductibles For Employer Healthcare Plans Soar, Kaiser Family Foundation Repo..
09/29 RITE AID : DreamShip Hot Air Balloon, Designed by Children of America’s Mi..
09/28 RITE AID : How a pharmacy helped sons of late Air Force captain
09/27 RITE AID : Expands Naloxone Dispensing Program in Four Additional States
09/27 RITE AID : Flu shot clinic in North Tonawanda
09/26 RITE AID CORPORATION : Post Earnings Coverage as Rite Aid Q2 Topline Registers G..
09/23DJRITE AID : Business Watch -- WSJ
09/22DJRITE AID : Same-Store Sales Fall Amid Generics Pressure
09/22 RITE AID CORP : Results of Operations and Financial Condition, Financial Stateme..
09/22 RITE AID : 2Q profit drops on higher costs, revenue rises
More news
Sector news : Retail - Drugs without Grocery
09/22DJRITE AID : Same-Store Sales Fall Amid Generics Pressure
09/15 MCKESSON : German antitrust watchdog raids drugs distributors
09/14DJGoogle Acquisition Apigee's Revenue Climbs
09/14DJGoogle Acquisition Apigee's Revenue Climbs
09/09DJWALGREENS BOOTS ALLIANCE : To Divest Additional Stores -- WSJ
More sector news : Retail - Drugs without Grocery
News from SeekingAlpha
09/28 Walmart's Next Move Against Amazon
09/28 PE firms snooze on 650-unit Walgreens sale
09/25 Insights From Rite Aid's 2nd Quarter
09/23 RITE-AID : We Just Don't Know
09/23 WALL STREET BREAKFAST : OPEC's New Push For Output Freeze Deal
Advertisement
Financials ($)
Sales 2017 32 856 M
EBIT 2017 680 M
Net income 2017 147 M
Debt 2017 6 848 M
Yield 2017 -
P/E ratio 2017 52,72
P/E ratio 2018 33,72
EV / Sales 2017 0,45x
EV / Sales 2018 0,43x
Capitalization 7 941 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
TrendsNeutralBullishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 7
Average target price 8,83 $
Spread / Average Target 17%
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-3.44%7 941
RAIA DROGASIL SA89.12%6 725
AIN HOLDINGS INC21.08%2 192
ORIOLA KD OYJ-5.32%832
AUSTRALIAN PHARMACEUTI..-1.30%726
ADCOCK INGRAM HOLDINGS..-6.14%584
More Results