Rite Aid posts lower loss, cuts forecast

Camp Hill, Pa. Rite Aid Corp. on Thursday reported a smaller second-quarter loss than a year ago, but lowered its expectations for the fiscal year due to the weak economy and high unemployment. The drug-store operator said economic conditions particularly hurt sales of nonpharmacy, or "front end," items such as food and cosmetics. It also expects weaker profit margins.

Rite Aid said it lost $120.4 million in the three months ended Aug. 29, compared with a loss of $227.4 million last year. Analysts expected a larger loss.

Revenue fell 3% to $6.3 billion from $6.5 billion a year ago and missed Wall Street estimates of $6.4 billion. The company has closed more than 100 stores over the last year, including 13 in the latest quarter.

Rite Aid said its same-store sales fell 1.1% for the quarter, with front-end sales down 4.9% and pharmacy revenue up 0.8%.