Rite Aid Shares Soar on Strong December Same-Store Sales
Rite Aid 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.
The article Rite Aid Shares Soar on Strong December Same-Store Sales originally appeared on Fool.com.Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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