A “sluggish” US economy and falling food produces has hit sales and earnings at US retail giant Safeway – but failed to dent the company’s shares.
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The company said today (15 October) that third-quarter net earnings had tumbled by more than 35% to US$128.8m during the the three months to the end of September.
Revenue dropped 7% to $9.5bn thanks in part to lower fuel sales although same-store sales fell 3%.
“Safeway’s sales remained soft, driven largely by deflation in dairy, produce and meat, and a sluggish economy,” said chairman, president and CEO Steve Burd.
“However, we are encouraged that our household and transaction counts increased in the quarter, and that volume trends continue to improve.”
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By GlobalDataSafeway’s shares were up 4.9% at $22.49 at 12:37 ET today.
