Duane Reade Says Blackout Will Cut Sales
New York-based drugstore chain Duane Reade (DRD) said last week's blackout will cut its current-quarter earnings by 3 cents a share.
The company expects sales to be $3.3 million lower than they would otherwise have been in the third quarter because all of its 237 stores lost power on Aug. 14. Inventory losses from perishable goods will also hurt the quarter's results.
Analysts are calling for earnings of 21 cents a share in the quarter. The company earned 33 cents a share last year.
Duane Reade said it has business-interruption insurance for losses that exceed a $500,000 deductible, but that any potential insurance recovery will not be recognized until collection is assured.The company said stores were gradually reopened on Aug. 15 as power was restored. It ended the day with 136 stores operational. Total chain operations were fully restored by the morning of Aug. 16. Duane Reade shares closed at $17.67 Thursday on the New York Stock Exchange.
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