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Rite Aid Shares Soar on Strong December Same-Store Sales

Rite Aid (NYSE: RAD  ) shares were up more than 9% around 2 p.m. today after the company announced that same-store sales for December grew 2.9% year over year. This keeps the company's string of positive monthly same-store sales results intact following a 2.1% improvement in October compared to the year-ago period and a 2.8% jump in November. 

Rite Aid's stock initially rose following its fiscal 2014 third-quarter earnings announcement on Dec. 23, based on improvements in both non-GAAP revenue and net income. But until today's same-store-sales announcement, Rite Aid's share price had experienced a steady decline, based primarily on tempered expectations for the coming year.

But at roughly $5.50 a share around 2 p.m., a roughly 9% improvement from this morning's opening bell, investors are clearly pleased with Rite Aid's string of positive same-store sales results. Through the 43-week period ending Dec. 28, 2013, same-store sales are up a more modest 0.5%, according to Rite Aid's statement.

December's pharmacy sales, despite the negative impact of introducing new generic drugs, once again led the way, jumping 4.1% year over year. November and October same-store sales were also led by pharmacy results, improving 3.9% and 3.4% compared to the previous year, respectively.

Same-store sales measures compare results from stores open at least a year. Stores open less than a year are not included in a same-store-sales calculations.


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  • Report this Comment On January 03, 2014, at 3:46 PM, hughjwade wrote:

    What a fun stock to watch. So much negative perception, built up over so many years of working hard to garner that negative perception. But the stock is cheap, now, based on some metrics, compared to its main competitors WAG and CVS. And, the generics impact is so often mis-analyzed, in a couple of ways. People look at gross revenues, but miss the margin story. Or, they think it is a one-time deal (which it may well be.) But what about the underlying demographic trends of the boomers getting old and needing more drugs? And the economy generally getting better. My bet: this stock outperforms WAG and CVS and the market in 2014. And the haters and people who are stuck on telling us it's a bubble about to burst: they usually aren't worthy of responding to, because the naysaying just shows that they don't know what they are really talking about, if they ignore any possibility of the upside.

  • Report this Comment On January 03, 2014, at 6:48 PM, ang1 wrote:

    I agree with the the above post 100%. A few "analyst" at the Fool have been trying to steer us clear of RAD stock since it was $1.00. While I can somewhat understand that motive, I have noticed that when RAD reaches $6.15 those same "analyst" never acknowledge the tremendous run and STILL rate RAD a bad buy! Remodeled stores on average are performing 3-4% higher sales, couple that with higher margins and you get a winning combination. With another 1200 or so stores due to be remodeled this year I wager that those "analyst" will regret their unwarranted positions on RAD. The BoD cautious expectations for 2014 will further fuel this solid run when earnings come out higher than expected! To those "analyst" at the Fool (you know who you are) turnaround stories CAN and do exist! RAD is one of them...

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Tim Brugger

Tim has been writing professionally for several years after spending 18 years (Whew! Was it that long?)in both the retail and institutional side of the financial services industry. Tim resides in Portland, Oregon with his three children and the family dog.

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9/1/2015 4:00 PM
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Rite Aid Corp CAPS Rating: ***