Safeway net income up in Q1
PLEASANTON, Calif. Safeway reported net income of $193.4 million, or 44 cents per diluted share, for the first quarter of 2008 compared to net income of $174.4 million 39 cents per diluted share, in the first quarter of 2007.
The company reported that total sales increased 7.3 percent to $10 billion in the first quarter of 2008 compared to $9.3 billion in the first quarter of 2007. According to the company, the sales growth was due to contributions from Lifestyle stores, an increase in the Canadian dollar exchange rate and higher fuel sales drove this increase. Identical-store sales increased 4.5 percent in the first quarter of 2008. Excluding fuel, identical-store sales increased 2.9 percent. Easter holiday sales occurred in the first quarter of this year compared to the second quarter of last year. When adjusted for the estimated impact of the Easter holiday shift, non-fuel, identical-store sales increased 2 percent.
“We are pleased with our earnings performance in the first quarter of 2008,” said Steve Burd, chairman, president and chief executive officer. “Our earnings per share grew by 13 percent compared to the first quarter of 2007. Part of this growth was due to the shift in the Easter holiday. In addition, our efforts to reduce and control costs contributed to operating margin improvement. At the same time, we invested in lower prices to improve our competitiveness and enhance our consumer offering. We remain confident in our ability to deliver earnings per share growth in the 13-18 percent range for this 53-week year.”
Safeway confirmed guidance for 2008 of $2.25 to $2.35 diluted earnings per share and free cash flow of $500 million to $700 million. Safeway revised guidance for identical-store sales growth, excluding fuel, from a range of 3 percent to 3.2 percent to a range of 2 percent to 2.3 percent.
Weis announces $80 million capital investment budget
SUNBURY, Pa. Weis Markets on Wednesday announced an $80 million capital investment budget, representing a 23 percent increase from last year, for the ensuing year at the company’s annual meeting here.
“We will target three quarters of this budget to our store base,” stated Jonathan Weis, Weis Markets vice chairman. “We currently have 19 major projects in various stages of planning, including three new stores, two replacement units, nine additions and five remodels.”
Mother’s Day spending expected to equal 2007
WASHINGTON Consumers plan to spend about as much on Mother’s Day shopping this year as they did in 2007 despite higher gas prices and other economic woes, according to a survey by the National Retail Federation.
The NRF survey showed consumers on average are going to spend $138.63 on Mother’s Day shopping this year, a drop of less than 1 percent from last year ($139.14).
While fewer consumers plan to make jewelry their gift of choice this year (29.7 percent compared to 32.8 percent in 2007), they’re expected to spend $2.7 billion in the category. Consumers are also projected to spend $3 billion on dinners and brunch, $2 billion on flowers, $1.4 billion on clothing and $1.2 billion on consumer electronics like digital photo frames and cameras.