The market conditions around the globe are improving steadily; the latest example of it is the excellent performance by Rite Aid Corporation (NYSE:RAD). As per the reports, the company has announced that its same-store sales rose 4.5% in the previous quarter.
Road So Far:
It announced on Wednesday that the previous quarter brought a lot of good news for the company and led to beyond expectations profits. On the basis of its excellent performance in the previous quarter, Rite Aid expects to renew the distribution agreement with its partner McKesson Corp. The company also looks forward to remodeling its wellness stores to benefit the earnings in fiscal year 2016.
In the fourth quarter that ended February 28, the company managed to report a hike of 4.5% in the same store sales, higher than 3.6% hike estimate given by Consensus Metrix. Total revenue of the company rose to an enormous figure of $6.85 billion. Net income of Rite Aid Corporation (NYSE:RAD) was reported $1.84 billion in the previous quarter as compared to $55.4 million during the same period in the last year.
The Year Forecast Now:
The excellent profit figure at the end of the first quarter has set the pace for the rest of the year. Rite Aid expects to earn 19 cents to 27 cents profit per share in 2015. Along with profit, the company also forecast full-year sales to revolve around $26.9 billion to $27.4 billion in 2015. If things fall in line, then the same store sales for the entire year will elevate 2.5%-4.5% throughout the year.
Rite Aid Corporation (NYSE:RAD) gives the credit of this excellent performance to its workers and states that it will look forward to increasing the planned wages and other benefits. The company also plans to introduce a reimbursement rate environment and certain new generics in this year. According to one of the spokesmen, things will turn out to be very challenging, and Rite Aid will have to work rigorously to achieve its targets.