Rite Aid Reports 2Q Loss, Adds New Execs
Camp Hill, Pa. Rite Aid announced disappointing second-quarter results Thursday. The chain hopes to remedy the losses with new management changes.
The drugstore chain said its net loss swelled to $222 million for the quarter, which ended Aug. 30, compared to $78.2 million a year ago.
Similarly, its revenue slipped 1% to $6.5 billion from $6.57 billion in 2007.
Same-store sales for the quarter increased slightly, 0.6%, over the same period last year. Excluding the acquired Brooks Eckerd stores, same-stores sales for the 13-week second quarter increased 3.1% over last year.
At the Brooks Eckerd stores, same-store sales for the 13-week second quarter decreased 4.1% over the prior-year period. This was an improvement over the first quarter's decrease of 7.2%.
The chain blamed the decline on slipping sales at the Brooks Eckerd stores, and the impact of closing underperforming stores, according to a company statement. The company, which closed a total of 83 stores, finished the quarter with 4,930 locations.
In other company news, Rite Aid named John T. Standley as president and COO. Standley, who replaces COO Robert J. Easley, was previously chief executive at Pathmark.
Frank Vitrano also joined the executive team as CFO and chief administrative officer. Vitrano, who replaces CFO Kevin Twomey and chief administrative officer Pierre Legault, is also a Pathmark veteran. He most recently served as the company’s president, CFO and treasurer.