Rite Aid Corporation (NYSE:RAD) Reported 4.3% Increase In Same Store Sales For March 2015

Rite Aid Corporation (NYSE:RAD) recently announced the sales results of the company for the month of March 2015. For the duration of previous four weeks, until March 28, 2015, the company reported that the same store sales swelled to touch 4.3% increase in contrast with the same period in previous year.

Why are analyst so optimistic about RAD?

The segregated sales figures

The front-end same store sales in the month of March for RAD soared 2.5%. The same store sales of Pharmacy shot up to 5.1%. This sale is also inclusive of the 167 basis points (approximately) of negative effect due to introductions of new generic drugs in the market.

The number of prescriptions at the comparable stores also augmented 2.5%, in comparison with the previous year’s same period.

The drugstore sales figures

The sales of company for the drugstores for the aforementioned four week duration jumped up 4.1% and touched the threshold of $2.026 billion, in contrast with the $1.947 billion in 2014 for the same four weeks of March. As far as the prescription sales are concerned, they contributed 69.9% of the total drugstore sales. On the other hand, the sales attributing to third party prescription symbolized 97.7% of the pharmacy sales.

The company, which is one of the leading Pharma firms and also has in its kitty, the largest numbers of drugstore chains, operated a total of 4,568 stores as on March 28, 2015. In March 2014, the company had more number of such stores. This number was 4,584 stores. Despite a decrease in the number of its drugstores, Rite Aid Corporation (NYSE:RAD) had increased sales and better revenue from this section. This happened because of a range of new portfolios and company strategies.

Nevertheless, it must be noted that the sales data is reported in the press release and therefore, this is unaudited, preliminary and also subject to the editing or revision.

Abbott Michael

Abbott Michael

Michael joined US Markets Daily in 2009 and is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments.