Rite Aid (RAD) Falls Despite February Pharmacy Sales Increase

NEW YORK (TheStreet) -- Rite Aid  (RAD) was falling 0.89% to $6.67 at 12:22 p.m. on Thursday despite the company's reporting same-store sales for February that featured an increase in total drugstore sales.

The company noted a 1.5% year-over-year increase in same-store sales in the five-week period in stores open at least one year. This is a crucial indicator of a retailer's health because it excludes stores that opened or closed in the last year. Front-end same store sales decreased 1.8%, and 0.5% stemmed from a decline in flu-related over-the-counter product sales thanks to a relatively mild flu season.

Total drugstore sales also increased 2.4% year over year to $2.515 billion from $2.457 billion. Pharmacy same-store sales increased 3.1%.

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TheStreet Ratings team rates RITE AID CORP as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate RITE AID CORP (RAD) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow."

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