US supermarket group Safeway has reported a 22% rise in first-quarter net income to US$174.4m, ahead of analysts’ forecasts.
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The company said yesterday (26 April) that revenue rose 5% to $9.3bn with sales “strong” in perishable and non-perishable products.
Safeway, the second-largest food retailer in the US, said this was the best start to the year it had enjoyed since 2001, when quarterly earnings hit $283.9m. However, the company said it was too early to increase its earnings projections for the rest of this year.
The company confirmed its earnings guidance for 2007 of $1.90 to $2.00 per diluted share and $400m to $600m of free cash flow. Safeway, which operates 1,755 stores in the US and Canada and posted sales of $40.2bn in 2006.
“This year is off to a good start,” said chairman, president and CEO Steve Burd. “Our sales were better than plan, as investments in Lifestyle stores and our marketing and pricing strategies produced good returns. We anticipate continued success as we move through the balance of this year.”
