A Safeway grocery store is graphic in Denver Feb 26, 2009.
Credit: Reuters/Rick Wilking
LOS ANGELES (Reuters) - Safeway Inc (SWY.N) foresee 2010 distinction that could tumble short of Wall Street"s perspective as the supermarket user tries to jump-start the commercial operation after obscure prices to improved contest with vital rivals.
Pleasanton, California-based Safeway, that operates the Safeway, Vons and Dominick"s chains, pronounced it expects to consequence $1.65 to $1.85 per share this year. Analysts on normal were seeking for $1.85, according to Thomson Reuters I/B/E/S.
The association foresee identical-store sales, incompatible the stroke of fuel sales, would be prosaic to up 1 percent. Identical-store sales embody determined supermarkets that have not been significantly renovated or replaced.
"Management has grown a story of being rather assertive with guidance, and we perspective this some-more realistic/conservative proceed as a majority indispensable change," Credit Suisse researcher Edward Kelly pronounced in a note to clients.
"While next accord superintendence was not a warn given majority (including us) noticed the Street as as well high, the $1.75 mid-point is rather reduce than expected," Kelly added.
Shares of Safeway were down 1.7 percent to $24.45 in late afternoon trading, after descending as low as $23.92 progressing in the session.
The association continues to conflict the notice that the prices are higher than those of rivals similar to Kroger Co (KR.N) and Supervalu Inc (SVU.N). It not long ago pronounced the prices are right away on standard with vital competitors and that it was finale investments associated to slicing prices.
Safeway additionally pronounced it expects to outlay $900 million to $1 billion money on collateral expenditures this year and anticipates free money upsurge of $900 million to $1.1 billion.
As piece of the strategy, Safeway has already remodeled 79 percent of the stores.
Chief Financial Officer Robert Edwards told investors that the multiple of fewer rival store openings and accelerating store closures, quite between small and feeble saved operators, should give Safeway "significant opportunity" to profitably urge marketplace share.
In the majority new fourth quarter, Safeway reported a distinction that was in line with analysts" expectations, notwithstanding deteriorating sales and margins.
(Reporting Lisa Baertlein in Los Angeles and Jessica Wohl in Chicago; Editing by Lisa Von Ahn, John Wallace, Tim Dobbyn)
Asian Markets
Niciun comentariu:
Trimiteți un comentariu