US: Safeway Q3 profits up as sales growth accelerates
By Dean Best | 13 October 2011
US retailer Safeway Inc today (13 October) reported a 6% increase in quarterly profits as its sales growth quickened.
The company booked net income of US$130.2m for the 12 weeks to 10 September, compared to $122.8m a year earlier. Operating profit was up 2.4% to $248.3m.
The retailer's total sales climbed 7.4% in the quarter to $10.1bn, driven in higher fuel sales. However, its like-for-like sales, excluding fuel, were up 1.5%.
In the second quarter of the year, Safeway's total sales increased 7.1% and its like-for-like sales inched up 0.5% year-on-year.
"Our sales momentum continued to build in the third quarter, and our costs were well controlled," Safeway chairman, president and CEO Steve Burd said.
However, Safeway's gross margin fell year-on-year from 28.14% in last year's third quarter to 27% this year. That said, the retailer's gross margin in the second quarter this year was also 27%.
Shares in Safeway were down 0.22% at $17.93 at 16:04 ET.
Sectors: Financials, Retail
Companies: Safeway Inc
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