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Article: View on identical-store sales cut.(Business)(Safeway Inc.'s management lowers its expectations for full-year identical-store sales growth )(Financial report)(Brief article)
- Article from:
- Chain Drug Review
- Article date:
- August 18, 2008
CopyrightCOPYRIGHT 2008 Racher Press, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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PLEASANTON, Calif. -- Acknowledging a soft sales environment that is unlikely to improve in the second half of the year, Safeway's management lowered its expectations for full-year identical-store sales growth but stuck with its current earnings guidance for the full 2008 fiscal year. Jittery investors reacted by fleeing, and the grocer's share price tumbled 10.8%, or $3.23, to close at $26.78 on the day its second quarter financial results were released.
The company lowered its expected identical-store sales growth (excluding fuel) from a range of 2% to 2.3% to between 1% and 2%. Management's earnings forecast was unchanged at $2.25 to $2.35 per diluted share.
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