Drugstore chain Rite Aid Corp. announced a worse-than-expected quarterly loss, and revised downward its 2010 profits, sending shares tumbling on Wednesday.
Rite Aid reported a $208.4 million loss—24 cent loss per share—for the last fiscal quarter, which ended on Feb. 27. The company attributed the loss to a mild winter and flu season, which dampened demand for over-the-counter medication. The Camp Hill, Pa.-based drugstore chain is the third largest in the nation.
“It was a difficult quarter with continued weak consumer demand, a weaker cough cold and flu season than last year, and continued pressure on pharmacy reimbursement,” said Rite Aid Chairman Mary Sammons in a statement.
The loss was the company’s 11th straight quarterly loss—since it acquired the Brooks Eckerd pharmacy chain in 2007. The number of prescriptions filled in stores dropped 1.7 percent last year, a major blow to earnings considering prescription sales accounted for two-thirds of the company’s total sales, according to the company.
For this year, Rite Aid expects the economy to remain weak and high unemployment rate to continue. It forecasted a fiscal 2011 loss of between 41 cents and 65 cents per share, worse than the 36 cents per share loss analysts expected.
Rite Aid trails CVS Caremark Corp. and Walgreens Company in market share in the United States. It operates close to 4,800 stores in 31 U.S. states, but has closed 22 stores during the last quarter and plans to shutter another 80 this year.
Shares of Rite Aid fell in Wednesday trading on the New York Stock Exchange, closing down 11.2 percent to settle at $1.50.
Rite Aid reported a $208.4 million loss—24 cent loss per share—for the last fiscal quarter, which ended on Feb. 27. The company attributed the loss to a mild winter and flu season, which dampened demand for over-the-counter medication. The Camp Hill, Pa.-based drugstore chain is the third largest in the nation.
“It was a difficult quarter with continued weak consumer demand, a weaker cough cold and flu season than last year, and continued pressure on pharmacy reimbursement,” said Rite Aid Chairman Mary Sammons in a statement.
The loss was the company’s 11th straight quarterly loss—since it acquired the Brooks Eckerd pharmacy chain in 2007. The number of prescriptions filled in stores dropped 1.7 percent last year, a major blow to earnings considering prescription sales accounted for two-thirds of the company’s total sales, according to the company.
For this year, Rite Aid expects the economy to remain weak and high unemployment rate to continue. It forecasted a fiscal 2011 loss of between 41 cents and 65 cents per share, worse than the 36 cents per share loss analysts expected.
Rite Aid trails CVS Caremark Corp. and Walgreens Company in market share in the United States. It operates close to 4,800 stores in 31 U.S. states, but has closed 22 stores during the last quarter and plans to shutter another 80 this year.
Shares of Rite Aid fell in Wednesday trading on the New York Stock Exchange, closing down 11.2 percent to settle at $1.50.
