Rite Aid Profit Drops 67% on Increased Rent

Rite Aid Corp. said first-quarter profit declined more than analysts estimated because of increased rent for new stores.

Net income slumped 67% to $11 million, or 1 cent a share, the Camp Hill, Pa.-based company said. Sales in the three months ended June 3 rose 2.7% to $4.34 billion.

Rite Aid’s costs have climbed as the company added a total of 85 stores in the last five quarters. Chief Executive Mary Sammons has opened more locations to compete with Walgreen Co. and CVS Corp., the top two U.S. drugstores by sales.

Rite Aid shares fell 35 cents, or 7.7%, to $4.20.