Rite Aid Reports Narrower Q2 Loss (RAD)

Rite Aid Corporation (NYSE: RAD), a retail drugstore chain in the U.S., today announced its fiscal 2012 second-quarter financial results. The Camp Hill, Pennsylvania-based company reported a narrower loss for the second quarter of fiscal 2012 as customer rewards program boosted sales.

For the second quarter ended August 27, 2011, Rite Aid reported a net loss of $92.3 million, or $0.11 per share, compared with a net loss of $197 million, or $0.23 per share reported for the same period in the previous year. The year-over-year decline in net loss was due to higher revenues, lower SG&A and interest expense and a gain on bond repurchases. This was partially offset by lower front-end margin. Analysts were expecting the company to report a loss of $0.18 per share.

Rite Aid’s revenue for the quarter ended August 27, 2011 was $6.3 billion, compared with revenue of $6.2 billion reported in the same period in the previous year. The increase in revenue was mainly due to an increase in same store sales, which climbed 2.2%.

Rite Aid reported second-quarter adjusted EBOTDA of $184.3 million, compared with $181.2 million reported for the same period in the previous year.

John Standley, President and CEO of Rite Aid, said that the company is pleased with the continued improvements in its top-line results highlighted by three consecutive quarters of same store sales growth. Standley further said that customers are responding positively to the company sales initiatives, including its highly popular and fast growing wellness + loyalty program, which now has more than 44 million enrolled members.

Rite Aid also updated its guidance for fiscal 2012. The company now expects fiscal 2012 sales to come in between $25.8 billion and $26.1 billion. Same store sales are expected to increase between 0.75% and 2%. The company expects fiscal 2012 adjusted EBITDA to come in at $825-$900 million. Net loss is forecast to come in between $345 million and $900 million.

Despite posting a narrower loss in the second quarter, Rite Aid shares are down sharply in trading today following a sell-off in the broad market. At last check, Rite Aid shares were down 3.74% to $1.03. The stock has fallen almost 10% in the last three trading sessions.

Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.