Rite Aid sales surge 5.3%

Rite Aid Corp. says sales at stores open at least a year grew 5.3% in December, boosted again by strengthening pharmacy sales.

Same-store salesat the Camp Hill, Pa.-based retailergrew 5.3% to $2.2. billion, beating analyst consensus of 4.5% and reflecting a 1.7% increase in front-end same-store sales and a 7.3% increase in pharmacy same-store sales.

"The front-end comp of 1.7% outpaced consensus of 1.2% and represents the strongest two-year trend since last January," noted Ed Kelly, Credit Suisse research analyst. "Flu-related OTC helped and Wellness remodels are likely a tailwind whose impact could ramp over time as a higher proportion of the store base is remodeled. The pharmacy comp beat as well, as sales rose 7.3% vs. consensus of 6.3%, although generic impact markedly decelerated sequentially due to the lapping of Cymbalta."

Prescription count at comparable stores increased 5.1% over the prior-year period. Prescription sales accounted for 64.8% of drug store sales, and third party prescription sales represented 97.6% of pharmacy sales.

Same-store sales for the 43-week period ended Dec. 27, 2014 increased 4.3% over the prior-year period. Front-end same-store sales increased 1% while pharmacy same-store sales increased 5.9%. Prescription count at comparable stores increased 3.6% over the prior-year period.

Total drug store sales for the 43 weeks period increased 3.9% with sales of $21.8 billion. Prescription sales represented 68.6% of total drug store sales, and third party prescription sales represented 97.5% of pharmacy sales.