Safeway sees sales and income boost in Q2

PLEASANTON, Calif. — Safeway Inc. reported net income of $145.8 million, or 41 cents per diluted share, for the second quarter of 2011 compared with $141.3 million, or 37 cents per diluted share for the second quarter of 2010.

The company reported that total sales increased 7.1% to $10.2 billion in the second quarter of 2011 from $9.5 billion in the second quarter of 2010. Identical-store sales, excluding fuel saw a 0.5% increase.

"Second quarter earnings results exceeded our expectations," said Steve Burd, chairman, president and CEO. "Identical-store sales improved during the second quarter and into the third quarter. We remain focused on building customer loyalty and expect sales to continue to gradually improve through the second half of the year."

Safeway is reaffirming guidance for the year of $1.45 to $1.65 earnings per diluted share. Identical-store sales are expected to gradually improve, approaching 1% for the year.