Dominick’s parent sees profit beat estimates

By Reuters
Posted Feb. 24 at 8:51 a.m.

Dominick’s Finer Foods parent Safeway Inc. reported a quarterly profit that topped Wall Street’s view as sales trends at its grocery stores improved.

The company, which also operates Safeway and Vons grocery stores, fourth-quarter net profit of $229.6 million, or 62 cents per share, topping analysts’ average call for a profit of 57 cents, according to Thomson Reuters I/B/E/S.

A year earlier, Safeway had a fourth-quarter net loss of $1.61 billion, or $4.06 a share, including a non-cash goodwill impairment charge of $1.97 billion.

Sales grew to $12.8 billion from $12.7 billion a year earlier. Higher fuel sales and an increase in the Canadian exchange rate were offset by reduced sales due to store closures and a 0.8 percent decline in identical-store sales, excluding fuel.

Safeway shares rose 0.1 percent to $22.09 in early trading on the New York Stock Exchange.

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