Safeway has reported net income rose to $145.8 million in the second quarter of 2011, compared to $141.3 million in the same period last year.“Second quarter earnings results exceeded our expectations. 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,” said Steve Burd, Chairman, President and CEO.
"At the same time, our cost reduction and profit improvement efforts helped generate improved earnings results in the second quarter, and we expect these efforts to contribute to earnings for the balance of the year,” he added.
Total sales rose 7.1% to $10.2 billion, primarily due to higher fuel sales. Gross profit declined 155 basis points to 27% of sales, compared to 28.55% of sales in the same period last year.
For the 24-week first half, net income came in at $171 million, a decline from the $237.3 million posted in Q2 2010, mostly due to the $80.2 million tax expense on repatriated earnings from Canada. Excluding this, net income would have been $251.2 million. Gross profit margin for the first half was 27.26% compared to 28.48% for last fiscal’s first half. Total sales were $19,968 million, a rise from last year’s $18,846 million.
Source: Planet Retail
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