Safeway Q2 net income and sales decline
Pleasanton, Calif. – Safeway reported a substantial decline in net income for the second quarter of fiscal 2013 as well as a drop in sales. Adjusted net income for the quarter was $8.4 million, compared to $122.7 million in the same quarter a year earlier. However, after adjusting for various legal expenses and loss from discontinued operations, net income for the quarter would have been $125.1 million.
Meanwhile, sales totaled $8.7 billion, a 1.6% decrease from $8.8 billion in the second quarter of fiscal 2012. Safeway cited lower fuel sales in 2013 and the disposition of its Genuardi's stores in 2012, partly offset by a same-store sales (excluding fuel) increase of 1.2%, as driving this small decline in sales.
Robert Edwards, president and CEO of Safeway, said expected profits from its June agreement to sell its Safeway Canada division to Canadian food retailer Sobeys Inc., as well as the April IPO of its Blackhawk subsidiary, should improve the company’s performance going forward.
“We are pleased with the significant milestones we achieved this quarter,” said Edwards. “The substantial cash proceeds we expect to receive from the sale of our Canadian operations combined with the completion of the Blackhawk IPO will allow us to broadly enhance stakeholder value.”