Rite Aid Widens Q2 Loss, Reports 1.5% Decline In Same-Store Sales

Rite Aid Corp RAD reported a higher-than-expected loss for the second quarter. RAD posted its Q2 loss at $199.3 million, or $0.23 per share, as compared to a loss of $120.4 million, or $0.14 per share, in the year-ago quarter. The company's revenue came in at $6.16 billion, down from $6.32 billion in the year-ago period. The company reported that the results were affected by lower sales, refinancing costs and expenses associated with its growth plans. However, analysts were expecting the company to post a loss of $0.16 per share, on revenue of $6.2 billion. RAD reported a 1.5% decline in its same-store sales. The company projects a loss of $0.46 per share to $0.67 per share for 2011. Analysts had projected a loss of $0.50 per share for 2011. Rite Aid President and CEO John Standley said, “Despite lower sales and the sluggish economy, we started to see some positive trends in our business during the second quarter. Sales in our core drugstore categories have started to strengthen, and our gross margin trends are showing improvement.” He added, “As we said at the start of the year, we made the strategic decision to invest now in initiatives designed to grow our business long term, including our new wellness+ customer loyalty program and the expansion of our immunization capabilities.” RAD shares plunged 10.91% to $0.98 in pre-market trading. Read more from Benzinga's Company news.