Though same-store sales rose in May, Rite Aid Corp. lowered its fiscal 2015 forecast, citing factors affecting pharmacy margins.


Rite Aid, fiscal 2015 forecast, same-store sales, May, pharmacy margins, comparable-store sales, comparable pharmacy sales, prescription count, front end, generic drugs, total drug store sales, prescriptions filled, fiscal 2015 first quarter, adjusted EBITDA, net income








































































































































































































































INSIDE THIS ISSUE
News
Opinion
Other Services
Reprints / E-Prints
Submit News
White Papers

Inside This Issue - News

Guidance for fiscal year cut by Rite Aid

June 16th, 2014

CAMP HILL, Pa. – Though same-store sales rose in May, Rite Aid Corp. lowered its fiscal 2015 forecast, citing factors affecting pharmacy margins.

For the five weeks ended May 31, comparable-store sales advanced 3.5% year over year. The gain continued Rite Aid’s comp-store sales growth trend this year.

In the front end, same-store sales edged up 0.5%. Comparable pharmacy sales rose 5%, reflecting a negative impact of 156 basis points from introductions of new generic drugs. The prescription count at comparable stores was up 3.2%.

Overall drug store sales for May were $2.484 billion, up 2.5% year over year. Prescription sales accounted for 68% of sales.

For the 13-week fiscal 2015 first quarter, same-store sales rose 3.1%. Prescriptions filled at comparable stores increased 2.3%. Total drug store sales climbed 2.6% to $6.425 billion.

While Rite Aid plans to release full first-quarter results on June 19, the retailer said it expects adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to come in at $275 million to $285 million and net income at $35 million to $45 million, with earnings per diluted share of 4 cents.

“Based on pharmacy margin trends, particularly in May, the company expects its results for adjusted EBITDA to trail the results for the previous year’s first quarter due primarily to higher-than-expected drug costs resulting from a delay in realizing the level of expected generic purchase price reductions and a greater-than-expected reduction in reimbursement rates,” Rite Aid stated.

The company also lowered its fiscal 2015 outlook due to the revised first-quarter guidance and generic purchase price reductions expected for the rest of the year.

For fiscal 2015, Rite Aid now projects adjusted EBITDA of between $1.275 billion and $1.350 billion and net income of between $298 million and $408 million, or 30 cents to 40 cents per diluted share.

In previous guidance for fiscal 2015, Rite Aid forecast adjusted EBITDA of $1.325 billion to $1.4 billion and net income of $313 million to $423 million, or 31 cents to 42 cents per diluted share.

Advertisement