Safeway sees sales, income boost in Q2

Retailer reaffirms guidance

PLEASANTON, Calif. — Safeway reported net income of $145.8 million, or 41 cents per diluted share, for second quarter 2011, compared with $141.3 million, or 37 cents per diluted share, during the year-ago period.

The company reported that total sales increased 7.1% to $10.2 billion in second quarter 2011 from $9.5 billion in second quarter 2010. Identical-store sales, excluding fuel, saw a 0.5% increase.

"Second-quarter earnings results exceeded our expectations," Safeway chairman, president and CEO Steve Burd said. "Identical-store sales improved during the second quarter and into the third quarter. We remain focused on building customer loyalty and expect sales to continue to gradually improve through the second half of the year."

Safeway reaffirmed guidance for the year of $1.45 to $1.65 earnings per diluted share. Identical-store sales are expected to gradually improve, approaching 1% for the year.

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