The US’s second largest retailer raised its earnings outlook for the full year when it announced today (20 July) that its second quarter income increased by more than 80% on the back of higher sales, lower costs and one-off items.
Go deeper with GlobalData
Sales for the three months ended 17 June rose from $8.8bn in the comparable period of last year to $9.37bn. Same-store-sales rose by 4.2% excluding fuel.
The company said that profits in the quarter rose to US$246.2m, or 55 cents a share, up from $134m, or 30 cents a share, last year. Interest earned on a tax refund added 13 cents a share.
“These improved results were driven by strong sales growth, a healthy expansion in non-fuel gross margin and significant operating and administrative expense leverage,” said Steve Burd, chairman and chief executive.
Safeway raised its 2006 financial guidance from $1.65 to $1.75 per share, excluding the 13 cent impact of the favourable tax settlement, up from $1.55 to $1.65 per share.
At time of press, shares in Safeway had risen 6.82% to $27.42.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
