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Rite Aid Q1 profit drops on costs; sales rise
Camp Hill, Pa. – Rising drug costs and falling reimbursements, as well as higher income tax expense, significantly cut into profits at Rite Aid Corp. Net income dropped 55% to $41.4 million in the first quarter, from $91 million in the year-ago period. Its earnings matched analysts' expectations.
Improving pharmacy sales helped drive a 3% increase in revenue to $6.47 billion from $6.29 billion, above Wall Street projections. Same-store sales rose 3.1%. Rite Aid maintained its fiscal 2015 earnings and revenue predictions.