BOISE, ID - Safeway released its Q3 financial report Wednesday, revealing an increase in sales to $8.31 billion compared to $8.10 billion from last year. During this same period, net income decreased to $9.5 million, or $0.04 per share, from $65.8 million, or $0.27 per share, last year. Analysts had predicted Q3 revenue to be reported at $8.45 billion, according to Nasdaq.
Safeway remains confident in its ability to remain a leading player in the retail game going forward, despite the difficult current retail environment. It points towards strong fundamentals such as higher identical-store sales numbers and its innovative marketing and consumer outreach programs as the path to growing the business in the future.
"The company believes that recently consumer confidence has improved modestly, but remains cautious,” Safeway explained in an official company statement. “The Company is responding to this challenging environment with marketing programs, such as Just for U, and a continuing focus on cost control."
In preparation for its impending merger with Albertsons, Safeway has been working to extinguish its ongoing debts. While this process may make for a leaner and more efficient operation in the future, it can be a painful process in the short term. Indeed, according to Nasdaq, this is the 3rd quarter in a row in which Safeway has recorded a loss on extinguishment of debt, this time for $84.4 million, or $0.22 per share. Safeway is confident that these moves are necessary to build a stronger retail brand going forward.
Stay tuned to AndNowUKnow for future updates on Safeway's operations, including its pending merger with Albertsons.
