Drugstore operator Rite Aid's quarterly profit more than halves

June 19 Thu Jun 19, 2014 7:16am EDT

June 19 (Reuters) - Drugstore operator Rite Aid Corp's quarterly profit more than halved, hurt by higher-than-expected drug costs and a bigger-than-anticipated fall in reimbursement rates.

The company's net income fell to $41.44 million, or 4 cents per share, in the first quarter ended May 31 from $89.66 million, or 9 cents per share, a year earlier.

The results were in line with the company's estimates, announced earlier this month.

Net sales rose 2.7 percent to $6.47 billion. (Reporting by Shailaja Sharma in Bangalore; Editing by Kirti Pandey)