Rite Aid Corp., the No. 3 U.S. drugstore chain, posted its third consecutive quarterly profit, helped by sales of higher-margin generic drugs.
The company earned $89.7 million, or 9 cents per share, in the fiscal first quarter ended June 1, versus a loss of $28 million, or 3 cents per share, a year earlier.
Revenue fell 2.7 percent to $6.29 billion, largely because it sold more generic drugs, which are less expensive but more profitable, and as it closed stores. Sales at stores open at least a year fell 2.5 percent in the quarter.
Rite Aid, which trails Walgreen Co. and CVS Caremark Corp. in size, has been remodeling stores and emphasizing its loyalty program to attract customers.
Fiscal 2013, which ended March 2, was its first profitable year since fiscal 2007, and it expects to be profitable again in the current year.
Rite Aid reaffirmed its sales and profit forecast from earlier this month.
Rite Aid shares have more than tripled since hitting a 52-week low in December. They closed at $3.11 on Wednesday.
© 2022 Thomson/Reuters. All rights reserved.