Rite Aid’s key sales reading grew in May

CAMP HILL, Pa. - Rite Aid Corp. said Thursday that its revenue continued to improve in May.

Rite Aid said revenue at stores open for at least one year rose 1.3 percent over the five weeks ended May 28. At those stores, pharmacy revenue grew 1 percent and prescriptions edged 0.1 percent higher. Revenue from the front end of the store, where such items as cosmetics, magazines and candy are sold, increased 1.8 percent, Rite Aid said.

Sales at stores open at least a year are considered an important indicator of retail performance because they leave out results from stores that have opened or closed within the last year. Rite Aid's sales at stores open at least a year have improved in recent months after a year and a half of steady declines.

Shares were up 3.77 percent early this afternoon (4 cents) to $1.10.

The company said its total revenue rose 1 percent to $2.46 billion from $2.44 billion.

May 28 was the end of Rite Aid's fiscal first quarter. The company said its total revenue was unchanged at $6.37 billion. Revenue at stores open at least a year grew 0.8 percent for the quarter. Pharmacy revenue rose 1.1 percent and prescriptions grew 0.4 percent, while front-end revenue was unchanged.

Analysts expected $6.39 billion in revenue, according to FactSet. They are expecting Rite Aid to report a quarterly loss of 12 cents per share on average.

Rite Aid had 4,704 stores at the end of the quarter, down from 4,767 a year earlier.