News

Rite Aid beats 4Q profit forecasts; sales fall short

Written by The Associated Press | Apr 7, 2016 8:13 AM
Rite_Aid13.jpg

Photo by Wikimedia Commons user Ildar Sagdejev

(Camp Hill) -- Rite Aid is reporting better-than-expected fiscal fourth-quarter profit, but sales fell short of forecasts and a key sales measure declined.

The Cumberland County-based company is in the process of being bought by rival Walgreens for about $9.41 billion in cash.

The deal is being reviewed by regulators, with the companies saying they expect it to close in the second half of the year.

The drugstore chain reported a steep drop in profit to $65.6 million, mainly because it saw a $1.7 billion tax benefit in the previous year.

Earnings, adjusted for one-time gains and costs, came to seven cents per share.

Revenue rose 21 percent to $8.27 billion in the period.

Same-store sales, a key measure of a retailer's health, fell less than one percent overall on a mix of lower front end sales and generic drugs impacting the value of pharmaceutical sales.

For the year, the company reported profit of $165.5 million, or 16 cents per share.

Revenue was reported at $30.74 billion. 

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