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Monday, November 01, 2010
TAGS: RETAIL NEWS
Brookstone Announces Third Quarter and Year-to-Date 2010
Specialty lifestyle retailer Brookstone, Inc. today announced financial results for the third quarter ended October 2, 2010.
For the 13-week period ended October 2, 2010, Brookstone reported a loss from operations of $14.1 million, compared to a loss from operations of $13.0 million for the comparable 13-week period last year.
For the 39-week period ended October 2, 2010, Brookstone reported a loss from operations of $43.7 million, compared to a loss from operations of $44.2 million for the comparable 39-week period last year.
Monday, November 01, 2010
TAGS: RETAIL NEWS
Rite Aid Reports 1.7 Percent Same Store Sales Decrease for October
Rite Aid Corporation (NYSE: RAD) today announced sales results for October.
For the four weeks ended October 23, 2010, same store sales decreased 1.7 percent over the prior-year period. October front-end same store sales decreased 1.3 percent while pharmacy same store sales, which included an approximate 242 basis points negative impact from new generic introductions, declined 1.8 percent. Prescriptions filled at comparable stores decreased 1.9 percent over the prior-year period.
Both front end and pharmacy same store sales were negatively impacted by a significantly weaker cough, cold and flu season compared to the same period last year. Total drugstore sales for the four-week period decreased 2.7 percent to $1.909 billion compared to $1.962 billion for the same period last year. Prescription revenue accounted for 68.5 percent of drugstore sales, and third party prescription revenue represented 96.2 percent of pharmacy sales.
Same store sales for the 34-week period ended October 23, 2010 decreased 1.3 percent over the prior-year period. Front-end same store sales were down 1.0 percent while pharmacy same store sales decreased 1.4 percent. Prescriptions filled at comparable stores decreased 1.8 percent over the prior-year period.
Total drugstore sales for the 34 weeks ended October 23, 2010 decreased 2.3 percent to $16.316 billion compared to $16.706 billion in last year’s like period. Prescription revenue represented 68.3 percent of total drugstore sales, and third party prescription revenue was 96.2 percent of pharmacy sales.
Shares of Rite Aid Corp. sank Tuesday, losing more than 6.5% after reporting lower-than-expected quarterly results. The news came on top of drug chain competitor Walgreen's same-store sales report in June, which showed marked improvement. Rite Aid reported a net loss of $73.7 million compared to net loss of $98.4 million in the prior period on sales of $6.4 billion, which was down 2.1% over the same period last year. The company attributed the loss to store closures and declines in both front end and pharmacy same store sales. There was also a decrease in gross margin rate, due to reimbursement rate pressures and lower generic cost reductions.
Investors showed their disappointment to Rite Aid's results by bailing out of RAD shares, though volume at 6 million shares Tuesday was well below the 90-day daily trading average volume of 8 million shares. Still, there wasn't a dry eye in the pharamceutical investment sector as Rite Aid investors watched Walgreen's turn in glowing results in same-store sales for June.
Walgreen's reported a sharp 8.4% increase in year-over-year same-store sales in June, lifting revenue to $5.67 billion. Yet about 3% of the sales increase in June was attributed to the combination of Duade Reade stores into Walgreen's numbers. Less the Duade results, Walgreen same-store sales in June rose 4%.
Rite Aid reported that same-store sales in the 13-week period ending May 29, 2010 dropped 0.9%. The drug chain said it had closed 58 stores during the period, which impact those results, though generic drug sales at existing stores fell 1.7% during the period as well and were also a major factor in the drop in same-store sales.
Gross margin was 26.8% of sales for the thirteen week period ended May 29, 2010 compared to 27.2% of sales for the thirteen week period ended May 30, 2009 due to lower pharmacy and front-end gross margin. The decrease in gross margin was due primarily to a reduction in reimbursement rates, from both government and private third party payors, fewer new generics and fewer cost reductions on existing generics. The year over year decline in pharmacy margin as a percent of sales was approximately 1.0% better than last quarter.