Safeway Posts Higher Profit

Pleasanton, Calif. Safeway Inc. on Thursday reported higher second-quarter profit as sales from its Lifestyle format stores lifted results and the grocer said it reduced costs.

The company, which operates stores under the Safeway, Vons, and Dominick's names, said net income rose to $234.3 million from $218.2 million a year earlier.

Revenue rose 3% to $10.12 billion from $9.82 billion. Analysts expected sales of $10.25 billion.

Safeway said contributions from its Lifestyle stores, higher fuel sales and a stronger Canadian dollar helped results during the quarter.

The company also reiterated its 2008 profit outlook, but lowered its expectation for same-store sales growth.

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