Canaccord Genuity on Rite Aid (RAD): RAD
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Price: $0.65 --0%
Rating Summary:
5 Buy, 7 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 9 | New: 38
Rating Summary:
5 Buy, 7 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 9 | New: 38
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Canaccord Genuity on Rite Aid (NYSE: RAD): RAD.
Canaccord analyst says, "The No. 3 U.S. drugstore chain behind Walgreen (NYSE: WAG) and CVS Caremark (NYSE: CVS) said its fourth-quarter loss narrowed slightly as same-store sales edged higher, buoyed by a late flu season. For the three months ended February 26, Rite Aid reported a loss of $205.7 million, a touch less than last year’s loss of $208.4 million. The company said total sales eased 0.1% to $6.44 billion, but same-store sales grew by 0.9%, including 1.0% growth in the front of the store and 0.8% in the pharmacy. Rite Aid predicted that sales at established drugstores will rise a further 0.5-2.0% for this fiscal year, as revenue continues to stabilize after more than two years of declines. But the company has not gotten off to a good start: March same- store sales slid 0.1%, compared with Walgreen’s 3% rise. As for strategy, Rite Aid said it will continue to build its Wellness Plus program, which has been popular with customers so far. There are now about 36 million members in the loyalty card program, which was introduced in April 2010. Apparently, Wellness Plus members spend more money when they shop at Rite Aid and gold and silver members visit the stores more often. Rite Aid also said it plans to remodel 500 stores, introducing a new format that includes more organic foods and homeopathic medicines."
Canaccord analyst says, "The No. 3 U.S. drugstore chain behind Walgreen (NYSE: WAG) and CVS Caremark (NYSE: CVS) said its fourth-quarter loss narrowed slightly as same-store sales edged higher, buoyed by a late flu season. For the three months ended February 26, Rite Aid reported a loss of $205.7 million, a touch less than last year’s loss of $208.4 million. The company said total sales eased 0.1% to $6.44 billion, but same-store sales grew by 0.9%, including 1.0% growth in the front of the store and 0.8% in the pharmacy. Rite Aid predicted that sales at established drugstores will rise a further 0.5-2.0% for this fiscal year, as revenue continues to stabilize after more than two years of declines. But the company has not gotten off to a good start: March same- store sales slid 0.1%, compared with Walgreen’s 3% rise. As for strategy, Rite Aid said it will continue to build its Wellness Plus program, which has been popular with customers so far. There are now about 36 million members in the loyalty card program, which was introduced in April 2010. Apparently, Wellness Plus members spend more money when they shop at Rite Aid and gold and silver members visit the stores more often. Rite Aid also said it plans to remodel 500 stores, introducing a new format that includes more organic foods and homeopathic medicines."
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