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RAD: Rite Aid Stock Heads Higher on Same-Store Sales

A later Easter boosted front-end sales at its stores


Rite Aid (RAD) stock surged almost 7% in Thursday morning trading after the drug store chain announced strong same-store revenue growth last month.

RADOverall same-store sales climbed 5% over the same period last year. Front-end same-store revenue rose 4.7% in April, while RAD pharmacy revenue increased 5.2%. RAD noted that a later date for Easter this year accounted for 4.6% of the front-end sales increase. Last year, Easter fell at the end of March, compared to Apr. 20 this year.

RAD: Rite Aid Stock Soars on Healthy Earnings
RAD: Rite Aid Stock Soars on Healthy Earnings

The introduction of lower-cost generic drugs dented pharmacy sales, though Rite Aid said that same-store prescription counts rose 2.3% over the prior year.

During the four weeks that ended on Apr. 26, Rite Aid recorded total drugstore sales of $1.99 billion, up 4.9% over the prior year.

Rite Aid operates 4,583 stores. Rite Aid noted that prescription sales comprised 67.9% of all drugstore sales during the prior.

On Wednesday, Rite Aid stock closed at $7.30 per share.

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