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Rite Aid Loss Doubles on Large Writedown

Drugstore operator Rite Aid says its loss more than doubled in the fiscal fourth quarter after the company was forced to write off all its goodwill.

Customers walk around the exterior of the Rite Aid in Harrisburg, Pa., Thursday, Sept. 22, 2005. Rite Aid Corp. reported a second-quarter loss that reversed gains from a year ago. (AP Photo/Carolyn Kaster)
Carolyn Kaster
Customers walk around the exterior of the Rite Aid in Harrisburg, Pa., Thursday, Sept. 22, 2005. Rite Aid Corp. reported a second-quarter loss that reversed gains from a year ago. (AP Photo/Carolyn Kaster)

The Camp Hill, Pa., company lost $2.3 billion, or $2.67 per share, including a write-down of $1.81 billion. Rite Aid lost $960.4 million, or $1.20 per share, a year ago. Revenue fell 2 percent, to $6.71 billion.

Excluding items, Rite Aid lost 14 cents per share.

Thomson Reuters says analysts expected a loss of 11 cents per share and $6.71 billion in revenue.

Most of the write-down came from Rite Aid's purchase of Brooks Eckerd drugstores last year. Those stores haven't done as well as Rite Aid's older stores.

Rite Aid's fiscal 2010 forecast was mostly below analyst estimates.