UPDATE 2-Rite Aid loss widens, cuts outlook, shares fall

(Adds acquisition, outlook details, byline)

By Aarthi Sivaraman

NEW YORK, Sept 27 (Reuters) - Rite Aid Corp (RAD.N: Quote, Profile, Research, Stock Buzz), the No. 3 U.S. drugstore chain, reported a wider-than-expected quarterly loss on Thursday, and cut its full-year outlook citing weaker-than-expected same-store sales and higher expenses, pushing its shares down as much as 6.5 percent.

Its net loss was $69.6 million, or 10 cents a share, in the fiscal second quarter ended Sept. 1, compared with a loss of $330,000, or 2 cents a share, a year earlier.

Analysts, on average, expected a loss of 6 cents a share, according to Reuters Estimates.

Rite Aid bought the Brooks and Eckerd U.S. drugstore chains from Canada's Jean Coutu Group (PJC) Inc (PJCa.TO: Quote, Profile, Research, Stock Buzz) on June 4, just after the end of its fiscal first quarter -- making it the largest drugstore chain on the U.S. east coast, but nationally behind Walgreen Co (WAG.N: Quote, Profile, Research, Stock Buzz) and CVS Caremark Corp (CVS.N: Quote, Profile, Research, Stock Buzz) in revenue and store count.

Acquisition-related costs, including a $65.2 million increase in depreciation and amortization, and integration expenses of $52.1 million, offset an increase in sales, Rite Aid said.

Revenue rose nearly 54 percent to $6.6 billion. Same-store sales increased 1.1 percent in the period.

While pharmacy same-store sales and same-store sales of "front end" general merchandise increased, sales in the photo category continued to lag.