Yesterday, the drugstore chain retailer,
Rite Aid Corporation
), reported a decline of 2% in its same-store sales (comps) for
the four weeks ended Mar 30, 2013. The decline was primarily due
to a fall in pharmacy comps, which was partially offset by an
improvement at the company's front-end stores. Following weak
comps results, Rite Aid's shares fell 1.7% and closed at
Pharmacy comps for March declined 4.5% being adversely
impacted by about 566 basis points due to the introduction of new
generic drugs. Prescription counts at comparable stores inched up
0.3%. Rite Aid's front-end comps increased 3.8%, primarily driven
by a shift in Easter timing.
Rite Aid reported total drugstore sales of $1.939 billion for
the month, with prescription sales accounting for 67.6% of
drugstore sales and third-party prescription sales making up for
97.0% of pharmacy sales. Rite Aid's March drugstore sales
declined 2.5% from the year-ago level of $1.989 billion.
Recently, one of Rite Aid's peers,
) also reported its comps results for the month of March.
Contrary to Rite Aid's performance, Walgreen's comps for the
period inched up 0.7% while total sales increased 2.3% to $6.16
Rite Aid carrying a Zacks Rank #1 (Strong Buy) is the third
largest retail drugstore in the U.S. based on revenues and number
of stores. With 4,621 stores, the company operates in 31 states
across the country and in the District of Columbia. Rite Aid is
expected to release its fourth-quarter and fiscal 2013 results on
Apr 11. The analysts polled by Zacks project break-even earnings
for the quarter, and a negative 1 cent for the fiscal year.
Other Stocks to Consider
Other drug store stocks that are performing well include
China Nepstar Chain Drugstore Ltd.
). Both the companies currently hold a Zacks Rank #1 (Strong
CHINA NEPSTAR (NPD): Free Stock Analysis
PHARMERICA CORP (PMC): Free Stock Analysis
RITE AID CORP (RAD): Free Stock Analysis
WALGREEN CO (WAG): Free Stock Analysis Report
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