Rite Aid Corporation
) same-store sales (comps) for the one month ended April 28, 2012,
rose 2.9%, based on strong front-end, pharmacy and prescription
count comps for the month. Front-end same-store sales for April
2012 increased 2.7%, while pharmacy and prescription count comps
were up 3.0% and 3.8%, respectively.
Pharmacy comps for April included a negative impact of around
311 basis points from new generic introductions.
Rite Aid reported total drugstore sales of $1.993 billion in
April, with prescription sales accounting for 67.9% of drugstore
sales and third party prescription sales making up for 96.6% of
pharmacy sales. The company's April sales represented a 2.5% rise
from the year-ago level of $1.945 billion.
Comps so far in fiscal 2012
Year-to-date, Rite Aid has registered a comps increase of 3.3%
for the eight weeks ended April 28, 2012. Comps for the period
comprised 3.6% front-end comps, 3.1% pharmacy comps and 3.2%
Net sales of $3.982 billion, thus far, in fiscal 2012 represent
a 2.8% increase from $3.875 billion reported in the year-ago
period. Sales for the eight-week period included 68.5% contribution
from prescription sales and 96.7% from pharmacy sales.
In an effort to expand its pharmacy and clinical services, Rite
Aid has applied additional resources, such as Wellness+ program for
diabetes and Flu Immunization program. We believe these programs
will enable the company to increase its customer base as well as
Moreover, the company is in the process of various cost cutting
initiatives including centralized indirect procurement of drugs,
administrative headcounts requirement, reducing supply chain costs,
reducing debt, etc. which will certainly benefit the company to
improve its bottom line.
Headquartered in Camp Hill, Pennsylvania, Rite Aid is the third
largest retail drugstore in the U.S. based on revenues and number
of stores. The company operates in 31 states across the country and
in the District of Columbia. As of April 28, 2012, the company
operated 4,658 stores versus 4,705 stores in the same period last
Rite Aid, which competes with
CVS Caremark Corporation
), currently, holds a Zacks #2 Rank, implying a short-term 'Buy'
rating on the stock. The company retains a long-term 'Neutral'
recommendation on the stock.
CVS CAREMARK CP (CVS): Free Stock Analysis
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