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Rite Aid Q2 Profitable Despite Analyst Doubts

For the fiscal second quarter ended August 31, Rite Aid Corp. posted net income of $32.8 million, or three cents per diluted share, versus a net loss of $38.8 million. Same store sales for the quarter increased 1% over the year-earlier period, according to the retailer, based on a 1.7% increase in pharmacy sales and a 0.3% decrease in front end sales, which include general merchandise such as home goods.

Analysts in both Zacks and Thompson Reuters surveys expected the diluted per share figure to come in at a loss of 4 cents.

Rite Aid reported revenues of $6.29 billion versus $6.23 billion in the 2012 second quarter.

“We posted excellent results in the second quarter, highlighted by another quarter of net income and an all-time company record for second-quarter adjusted EBITDA,” Rite Aid chairman and CEO John Standley pointed out in comments of the announced earnings. “As we continue to improve our operational and financial performance, we are also making tremendous progress in transforming our more than 4,600 stores into true neighborhood destinations for health and wellness, as indicated by our successful launch of the wellness65+ loyalty program for seniors, a strong start to our flu immunization campaign and the completion of our 1,000th wellness store remodel.”

In the second quarter, Rite Aid relocated five stores and remodeled 109, bringing the total number of wellness concept stores chain wide to 1,019. The company closed a dozen stores and acquired one in the quarter, resulting in a total store count of 4,604 at the period’s end.