Safeway (SWY)

Sales and Other Revenue

Total sales declined 8.1% to $12.7 billion in the fourth quarter of 2009 compared to $13.8 billion in the fourth quarter of 2008. This decline was the result of an additional week in 2008 and a 4.1% decline in identical-store sales, excluding fuel, for the quarter.

Sales and Other Revenue

Total sales declined 7.0% to $9.5 billion in the third quarter of 2009 compared to $10.2 billion in the third quarter of 2008. This decline was the result of lower fuel sales (which was due primarily to lower fuel prices), a 3.0% decline in identical-store sales for the quarter, excluding fuel, and a decline in the Canadian exchange rate.

Sales and Other Revenue

Total sales declined 6.5% to $9.5 billion in the second quarter of 2009 compared to $10.1 billion in the second quarter of 2008. This decline was the result of lower fuel sales (which was due primarily to lower fuel prices), a decline in the Canadian exchange rate and a 1.5% decline in identical-store sales for the quarter, excluding fuel.

Easter holiday sales occurred in the second quarter of 2009 and in the first quarter of 2008. After excluding the weeks affected by the shift in Easter holiday sales, identical-store sales for the quarter, excluding fuel, declined 2.2%.

Sales and Other Revenue

Total sales declined 7.6% to $9.2 billion in the first quarter of 2009 compared to $10.0 billion in the first quarter of 2008. This decline was the result of lower fuel sales (which was due primarily to lower fuel prices), a decline in the Canadian exchange rate and a shift in holiday sales.

Identical-store sales for the quarter, excluding fuel, declined 0.7%. After excluding the weeks affected by the shift in Easter holiday sales, identical-store sales, excluding fuel, increased to an estimated 0.2%.

Sales and Other Revenue

Total sales increased 3.4% to $13.8 billion in the fourth quarter of 2008 compared to $13.4 billion in the fourth quarter of 2007. This increase was driven by the additional week in 2008 and identical-store sales increases, excluding fuel, of 0.4%, partly offset by a decrease in the Canadian exchange rate and lower fuel sales.

Sales and Other Revenue

Total sales increased 3.9% to $10.2 billion in the third quarter of 2008 compared to $9.8 billion in the third quarter of 2007. This increase was driven by higher fuel sales and contributions from Lifestyle stores. Identical-store sales increased 2.8% including fuel and 0.5% excluding fuel.

“During the third quarter we took action to provide our customers with better everyday values,” said Steve Burd, Chairman, President and CEO. “As we begin the fourth quarter, our sales momentum is building, with identical-store sales (excluding fuel) currently above 1.5%, and we are continuing to reduce costs. We continue to believe our diluted earnings per share for 2008 will be in the range of $2.25 to $2.35 for this 53-week year.”

Sales and Other Revenue

Total sales increased 3.0% to $10.1 billion in the second quarter of 2008 compared to $9.8 billion in the second quarter of 2007. This increase was driven by contributions from Lifestyle stores, higher fuel sales and an increase in the Canadian dollar exchange rate, partly offset by a shift in Easter holiday sales which occurred in the first quarter of 2008 compared to the second quarter of 2007. Non-fuel, identical-store sales declined 0.3% due in part to the shift in Easter holiday sales. When adjusted to exclude the estimated impact of the Easter holiday shift, non-fuel, identical-store sales increased 1.0%.

“Our earnings performance this quarter was strong in light of a soft sales environment and the Easter holiday shift. We produced this earnings growth primarily through efficient retail execution, cost reduction and sales mix improvement,” said Steve Burd, Chairman, President and CEO. “Free cash flow for the quarter was also very strong.”

“We are focused on improving our sales momentum by delivering greater value to our customers,” added Burd. “We remain confident in our ability to deliver earnings per share growth of 13-18% for this 53-week year.”

Sales and Other Revenue

Total sales increased 7.3% to $10.0 billion in the first quarter of 2008 compared to $9.3 billion in the first quarter of 2007. Contributions from Lifestyle stores, an increase in the Canadian dollar exchange rate and higher fuel sales drove this increase. Identical-store sales increased 4.5% in the first quarter of 2008. Excluding fuel, identical-store sales increased 2.9%. Easter holiday sales occurred in the first quarter of this year compared to the second quarter of last year. When adjusted for the estimated impact of the Easter holiday shift, non-fuel, identical-store sales increased 2.0%.

“We are pleased with our earnings performance in the first quarter of 2008,” said Steve Burd, Chairman, President and CEO. “Our earnings per share grew by 13% compared to the first quarter of 2007. Part of this growth was due to the shift in the Easter holiday. In addition, our efforts to reduce and control costs contributed to operating margin improvement. At the same time, we invested in lower prices to improve our competitiveness and enhance our consumer offering. We remain confident in our ability to deliver earnings per share growth in the 13-18% range for this 53-week year.”

Sales and Other Revenue

Total sales increased 6.8% to $13.4 billion in the fourth quarter of 2007 compared to $12.5 billion in the fourth quarter of 2006. Contributions from Lifestyle stores, increased fuel sales and an increase in the Canadian dollar exchange rate drove this increase. Identical-store sales increased 4.4% in the fourth quarter of 2007. Excluding fuel, identical-store sales increased 2.7%.

“We are pleased with our performance in the fourth quarter of 2007,” said Steve Burd, Chairman, President, and CEO. “Excluding the $0.08 tax benefit in the fourth quarter of 2006, our diluted earnings per share increased by 11.5%.”

Sales and Other Revenue

Total sales and other revenue increased 3.9% to $9.8 billion in the third quarter of 2007 compared to $9.4 billion in the third quarter of 2006. Excluding the effect of fuel sales, comparable-store sales increased 3.2% and identical-store sales increased 3.0%.

“Our Lifestyle store rollout, along with innovation in both perishable and non-perishable offerings, continues to generate sales growth in our stores,” said Steve Burd, Chairman, President and CEO. “This coupled with cost reduction efforts continue to drive strong performance.”

Sales and Other Revenue

Total sales and other revenue increased 4.9% to $9.8 billion in the second quarter of 2007 compared to $9.4 billion in the second quarter of 2006. Identical-store sales increased 4.5% for the second quarter of 2007. Excluding the effect of fuel sales, identical-store sales increased 3.7%. Contributions from Lifestyle stores as well as strong perishable and non-perishable performance drove this increase.

“Our positive sales and income trends continued in the second quarter, bolstered by strong performance from both new and seasoned Lifestyle stores,” said Steve Burd, Chairman, President, and CEO. “We are on track to deliver earnings toward the top end of the range we previously provided for the year.”

Sales and Other Revenue

Total sales and other revenue increased 4.8% to $9.3 billion in the first quarter of 2007 compared to $8.9 billion in the first quarter of 2006. Identical-store sales increased 4.8% for the first quarter of 2007. Excluding the effect of fuel sales, identical-store sales increased 4.5%. Sales were strong in both perishable and non-perishable products.

“This year is off to a good start,” said Steve Burd, Chairman, President, and CEO. “Our sales were better than plan, as investments in Lifestyle stores and our marketing and pricing strategies produced good returns. We anticipate continued success as we move through the balance of this year.”

Sales and Other Revenue

Total sales increased 3.8% to $12.5 billion in the fourth quarter of 2006 compared to $12.0 billion in the fourth quarter of 2005. Contributions from Lifestyle stores and strong perishable and non-perishable performance drove this increase. Identical-store sales, including and excluding fuel, increased 3.5% in the fourth quarter of 2006.

“Our fourth-quarter results demonstrate that our strategy continues to work well,” said Steve Burd, Chairman, President and CEO. “By delivering superior perishables, completing more Lifestyle stores, making investments in price and promotion, controlling our costs, and delivering outstanding service, we are able to bring more to the table for our customers and our shareholders. We plan to continue to build on this momentum in 2007.”

Sales and Other Revenue

Total sales increased 5.3% to $9.4 billion in the third quarter of 2006 from $8.9 billion in the third quarter of 2005. Contributions from Lifestyle stores, strong perishable and non-perishable performance and increased fuel sales drove this increase. Identical-store sales increased 5.0% for the third quarter of 2006. Excluding fuel sales, identical-store sales increased 3.7%.

“We had another good quarter with strong sales and operating expense leverage,” said Steve Burd, Chairman, President and CEO. “We continue to execute on our strategy and are delivering the improved results we expected.”

Sales and Other Revenue

Total sales increased 6.4% to $9.4 billion in the second quarter of 2006 from $8.8 billion in the second quarter of 2005. Identical-stores sales increased 5.6% for the second quarter of 2006. Excluding fuel sales, identical-store sales increased 4.2%. Safeway estimates that the shift in Easter holiday sales (which occurred in the second quarter of 2006 compared to the first quarter of 2005) increased identical-store sales by approximately 1.0% in the second quarter of 2006.

“These improved results were driven by strong sales growth, a healthy expansion in non-fuel gross margin, and significant operating and administrative expense leverage,” said Steve Burd, Chairman, President and CEO. “We believe we are well positioned to deliver improved results for the year, and therefore are raising our earnings guidance for 2006.”

Sales and Other Revenue

Total sales and other revenue increased 3.2% to $8.9 billion in the first quarter of 2006 compared to $8.6 billion in the first quarter of 2005, despite the fact that Easter holiday sales occurred in the first quarter of 2005 but did not occur until the second quarter of 2006. Identical-store sales increased 2.7% for the first quarter of 2006. Excluding the effect of fuel sales, identical-store sales increased 1.5%.

“We are pleased with our results this quarter,” said Steve Burd, Chairman, President and CEO. “As expected, the momentum we built in 2005 has continued into the first quarter of 2006. Taking into account the timing of the New Year’s and Easter holidays, our identical-store sales increase of 1.5% is consistent with our guidance of 3% for the year. We also produced double-digit earnings growth while absorbing a number of significant cost increases.”

Sales and Other Revenue

Sales and other revenue increased 7.2% to $8.9 billion in the third quarter of 2005 from $8.3 billion in the third quarter of 2004. Increased fuel sales, Safeway’s marketing strategy and Lifestyle store execution drove this sales increase.

Comparable store sales increased 5.7% and identical store sales (which exclude replacement stores) increased 5.4% for the third quarter of 2005. Excluding the effect of fuel sales, identical store sales increased 3.4%.

“We are pleased with the progress we made this quarter on several fronts,” said Steve Burd, Chairman, President and CEO. “Our identical store sales are the strongest they have been in over four years, we gained U.S. market share in 35 of the last 36 weeks, operating and administrative expense as a percentage of sales declined significantly in the quarter, and our capital investments and Lifestyle stores continue to exceed expectations.”

“During the quarter, we also initiated a strategic solution to improve our operations in Texas, made significant progress on the labor front with a tentative agreement with the UFCW in Chicago, and completed an employee buyout in the Bay Area,” added Burd. “In addition, we have decided to utilize a lower tax rate under the American Jobs Creation Act of 2004 to repatriate funds from Canada, allowing us to pay down debt in the United States in the near term. In short, we have been busy and are satisfied with the results.”

Sales and Other Revenue

Total sales increased 4.7% to $8.8 billion in the second quarter of 2005 from $8.4 billion in the second quarter of 2004. Safeway’s marketing strategies and the recovery from last year’s strike in Southern California drove this sales increase. However, a shift in Easter holiday sales, which occurred in the second quarter of last year compared to the first quarter of this year, reduced the sales increase.

Comparable store sales increased 3.3% and identical store sales (which exclude replacement stores) increased 2.8% for the second quarter of 2005. Further, excluding the effect of fuel sales, identical store sales increased 1.4%. When adjusted for the Easter holiday, non-fuel identical store sales increased 2.6%.

Sales and Other Revenue

Total sales increased 12% to $8.6 billion in the first quarter of 2005 compared to $7.7 billion in the first quarter of 2004. Sales in the first quarter of 2004 were reduced by a strike in Southern California that covered eight weeks of the 12-week quarter. Additionally, Easter holiday sales occurred in first quarter of 2005 compared to the second quarter of 2004. Excluding sales at strike-affected stores, comparable store sales increased 4.4% and identical store sales (which exclude replacement stores) increased 4.0% for the first quarter of 2005. Further, excluding the effect of fuel sales, comparable store sales increased 3.2% and identical store sales increased 2.8%. When adjusting for the Easter holiday, non-fuel identical store sales increased 1.6%.

“We are pleased with our first quarter,” said Steve Burd, Chairman, President and CEO. “We believe our results are directly related to the strategy we developed nearly three years ago and to the tremendous efforts of our employees to deliver our consumer proposition.”

“Today, we are offering our customers outstanding quality meat and produce, and a growing variety of proprietary products such as Signature Soups, Signature Sandwiches and prepared meals,” added Burd. “In addition, we continue to refine and improve our in-store bakeries, while providing industry leading customer service. These quality products and services are highlighted in our new and remodeled Lifestyle stores that provide a warm and comfortable shopping environment for our customers. We believe these

improvements are giving our customers “Ingredients for Life” and will provide us with a great opportunity to profitably grow our business for years to come.”