12:57 pm Rite Aid Sales Pretty Alright in December
Post# of 23080
Posted On: 01/03/2015 11:20:21 PM
12:57 pm Rite Aid Sales Pretty Alright in December
The stock of drugstore operator Rite Aid (RAD 7.52, unch) had its ups and downs in 2014, yet it closed out the year in spectacular fashion, gaining roughly 70% from its low in mid-October to its high in late-December. Investors learned today that the company had a pretty good end to the year, too, from a sales standpoint.
Specifically, Rite Aid reported total drugstore sales for the four-week period ended December 27 increased 4.9% to $2.212 billion, with prescription sales accounting for 64.8% of drugstore sales.
The sales gain was aided by a 5.3% gain in same-store sales over the prior-year period. The jump in same-store sales wasn't just because of Rite Aid's pharmacy business, which logged a 7.3% increase in same-store sales. Front-end same-store sales increased 1.7%.
Rite Aid and other drugstores, like CVS Health (CVS) and Walgreens (:WBA), have undoubtedly been busy in the face of a flu season that has hit the epidemic threshold under the parameters established by the Centers for Disease Control (CDC).
The epidemic label often gets applied in flu season, yet the CDC has warned that this year's flu could be quite severe due to a pernicious strain of influenza known as H3N2. The latest update from the CDC notes that 36 states have reported the spread of influenza as being widespread.
On December 18 Rite Aid reported better than expected fiscal third quarter results. At the time, it raised its FY15 EPS guidance to $0.31-0.37 from $0.22-0.33 and said it expected same-store sales to be up 3.75-4.25% versus a prior view of 3-4%.
A severe flu season isn't what anyone wants to endure, yet it could ultimately be good news for Rite Aid and its peers. Increased shopper traffic raises the potential for increased sales at the front-end, which is stocked with more discretionary items.
We'll know more when Rite Aid reports its fiscal fourth quarter results, but what is known now is that Rite Aid's stock and its business closed 2014 on an upbeat note.
The stock of drugstore operator Rite Aid (RAD 7.52, unch) had its ups and downs in 2014, yet it closed out the year in spectacular fashion, gaining roughly 70% from its low in mid-October to its high in late-December. Investors learned today that the company had a pretty good end to the year, too, from a sales standpoint.
Specifically, Rite Aid reported total drugstore sales for the four-week period ended December 27 increased 4.9% to $2.212 billion, with prescription sales accounting for 64.8% of drugstore sales.
The sales gain was aided by a 5.3% gain in same-store sales over the prior-year period. The jump in same-store sales wasn't just because of Rite Aid's pharmacy business, which logged a 7.3% increase in same-store sales. Front-end same-store sales increased 1.7%.
Rite Aid and other drugstores, like CVS Health (CVS) and Walgreens (:WBA), have undoubtedly been busy in the face of a flu season that has hit the epidemic threshold under the parameters established by the Centers for Disease Control (CDC).
The epidemic label often gets applied in flu season, yet the CDC has warned that this year's flu could be quite severe due to a pernicious strain of influenza known as H3N2. The latest update from the CDC notes that 36 states have reported the spread of influenza as being widespread.
On December 18 Rite Aid reported better than expected fiscal third quarter results. At the time, it raised its FY15 EPS guidance to $0.31-0.37 from $0.22-0.33 and said it expected same-store sales to be up 3.75-4.25% versus a prior view of 3-4%.
A severe flu season isn't what anyone wants to endure, yet it could ultimately be good news for Rite Aid and its peers. Increased shopper traffic raises the potential for increased sales at the front-end, which is stocked with more discretionary items.
We'll know more when Rite Aid reports its fiscal fourth quarter results, but what is known now is that Rite Aid's stock and its business closed 2014 on an upbeat note.
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NASDAQ DIP and RIP
Here is the best word that describes what i do here.
Intuitive;
means having the ability to understand or know something without any direct evidence or reasoning process.
I was born with it, I'm truly blessed!
Alway's searching for winners'