Safeway 4Q net income jumps

Published on NewsOK Modified: February 21, 2013 at 12:51 pm •  Published: February 21, 2013
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A 26 percent decline in the number of Safeway shares helped make the value of each remaining share higher.

Revenue edged up 1 percent to $13.77 billion from $13.6 billion in the prior year. Analysts expected $13.69 billion.

Revenue was helped by higher prepaid and gift card sales. Revenue in stores open at least one year, a key retail metric, rose 0.8 percent, hurt by a customer shift to generic drugs.

For the year, net income rose 15 percent to $596.5 million, or $2.41 per share. That compares with $516.7 million, or $1.49 per share in the prior year. Revenue rose 1 percent to $44.21 billion from $43.63 billion in the prior year.

The company did not give specific guidance but CEO Burd said eight weeks into the quarter revenue in stores open at least one year is up 2 percent, so that figure could be up 1.8 percent to 2 percent in the quarter.

"As Just for U matures, and as the fuel and wellness initiatives are rolled out, we feel our volume, our market share, and our (revenue in stores open at least one year) should only continue to improve," he said.

The company plans to give detailed guidance at an investor event on March 6.

Its shares rose $2.72, or 13.5 percent, to $22.84 in afternoon trading after rising as high as $23.96 earlier in the session. That was its highest level since July 2011.