Rite Aid disappointed with 3Q results

CAMP HILL, Pa. Rite Aid reported today that it was disappointed with its results for its third quarter ended Dec. 1, 2007.

The company reported a net loss for the quarter of $84.8 million or 12 cents per diluted share, compared with net income of $1.1. million but a loss of 1 cent per diluted share because of the negative impact of preferred stock dividends. Revenues for the period were $6.5 billion versus revenues of  $4.3 billion last year, an increase of 51%. These results reflect the acquisition of Brooks Eckerd stores.

Same-store sales, which do not include the Brooks Eckerd stores, increased 0.7% in the third quarter as compared to the year-ago like period, consisting of a 1.2%  pharmacy same store sales increase and a 0.4% decrease in front-end same store sales.

“Pharmacy same store sales increases remained steady throughout the quarter, gross margin rate improved and our team once again did a good job of controlling expenses. But even though our front end sales started to turn positive in November, we are disappointed with our results,” said Mary Sammons, Rite Aid chairman, president and ceo. “Like the rest of the industry, our business has been negatively impacted by a slow start to the cough, cold and flu season and a more cautious consumer.

“On the positive side, we’re pleased with our progress on the Brooks Eckerd integration and continue to expect all of the acquired stores to be converted and integrated into Rite Aid by fall of next year,” Sammons said. “Our new and relocated store development is also on track for the year.”