RAD Rite Aid Corp

By Aisha Al-Muslim

Shares of Rite Aid Corp. (RAD) rose 32% to $9.39 Thursday after Amazon.com Inc. (AMZN) said its customers will have the option to pick up packages from the company's drugstores.

Rite Aid's stock rise comes despite reporting a net loss Wednesday in the latest quarter as sales fell slightly.

Amazon said Thursday shoppers will be able to pick up purchases at specialized counters in more than 1,500 Rite Aid locations by the end of the year. Amazon will initially roll out its Rite Aid delivery option in about 100 stores.

Financial terms of the arrangement weren't disclosed, but Rite Aid will potentially gain foot traffic and the sales that could come with it.

For the first quarter ended June 1, Rite Aid reported a loss of $99.7 million, or $1.88 a share, from a profit of $214.4 million, or $4.07 a share, a year earlier.

The Camp Hill, Pa.-based company posted an adjusted loss per share from continuing operations of 14 cents for the quarter, compared with a loss of 8 cents a share analysts polled by Refinitiv were targeting.

For the quarter ended June 1, revenue fell slightly from $5.38 billion to $5.37 billion, within range of the consensus forecast of $5.38 billion. Same-store sales from retail pharmacy continuing operations for the quarter increased 1.4%.

For fiscal 2020, Rite Aid expects an adjusted loss per share of 14 cents to 72 cents. The company still expects sales of $21.5 billion to $21.9 billion. It expects same-store sales to be flat to up 1%.

Shares of Rite Aid are up more than 76% in the last 12 months.

Write to Aisha Al-Muslim at aisha.al-muslim@wsj.com

(END) Dow Jones Newswires

June 27, 2019 14:58 ET (18:58 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.