Safeway Q2 profit up slightly, lowers outlook

PLEASANTON, Calif. Safeway reported a small spike in net income of 57 cents per diluted share ($238.6 million) for the second quarter of 2009, a 7.5% increase from the year-ago period.

Total sales declined 6.5% to $9.5 billion in the second quarter 2009, compared with $10.1 billion in the second quarter 2008. Safeway said this decline was the result of lower fuel sales (which was due primarily to lower fuel prices), a decline in the Canadian exchange rate and a 1.5% decline in identical-store sales for the quarter, excluding fuel.

“In this challenging economic environment, we continue to focus on providing our customers with greater value by lowering everyday prices on items people buy most often and offering high quality private label brands,” said Steve Burd, chairman, president and CEO.

Safeway lowered earnings guidance for the year 2009 to $1.70 to $1.90 per diluted share and identical-store sales guidance, excluding fuel, to negative 1% to negative 1.7%.