Rite Aid 1Q profit drops on costs, revenue rises

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Associated Press

Posted on June 19, 2014 at 7:00 AM

Updated Thursday, Jun 19 at 7:02 AM

CAMP HILL, Pa. (AP) — Rite Aid's fiscal first-quarter profit dropped 55 percent as it dealt with higher-than-expected drug costs and reimbursement rate reductions. But its earnings met analysts' expectations and revenue topped Wall Street's view.

The nation's third-largest drugstore chain reported on Thursday net income attributable to common stockholders of $41.4 million, or 4 cents per share, for the period ended May 31. A year earlier it earned $91 million, or 9 cents per share.

Revenue for the Camp Hill, Pennsylvania, company climbed 3 percent to $6.47 billion from $6.29 billion. Analysts surveyed by FactSet expected revenue of $6.44 billion.

Sales at stores open at least a year rose 3.1 percent, while sales at pharmacies open at least a year increased 4.6 percent.

Rite Aid Corp. maintained its fiscal 2015 forecast.

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