Shares of the drugstore chain were higher by market open, gaining 2.5% to $6.52.
Rite Aid said same-store sales climbed 0.7% over the four weeks to March 29, depressed by front-end sales (sales excluding prescription drugs) which decreased 5%. Front-end sales were negatively impacted by the shift in the timing of Easter to April 20 compared to March 31 a year earlier.
Pharmacy same-store sales increased 3.5%, a result which included a negative 133 basis points impact from new generic drugs.
Overall, drugstore sales increased 0.4% to $1.947 billion, with prescription sales accounting for 69.4% of drugstore sales.
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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."