Rite Aid Lowers 2011 Sales Forecast on `Sluggish Economy'; Shares Decline
Rite Aid Corp., the third-largest U.S. drugstore chain, reduced its sales forecast for the year, sending the shares down as much as 11 percent.
Sales will amount to as much as $25.4 billion, the Camp Hill, Pennsylvania-based company said today in a statement. That compared with a previous top target of $25.6 billion. The company also posted a wider second-quarter loss than analysts projected.
Sales fell 2.5 percent in the quarter ended Aug. 28, hurt by a “sluggish economy,” Rite Aid said. The chain, led by Chief Executive Officer John Standley, has more than 4,700 stores across the U.S.
The second-quarter loss widened to $199.3 million, or 23 cents a share, from $120.4 million, or 14 cents, a year earlier. Analysts on average projected 16 cents.
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