Safeway 2Q adjusted earnings beat Street

Safeway 2nd-quarter net income falls but adjusted earnings beat expectations

Associated Press

In this Wednesday, July 17, 2013, photo, Safeway brand grocery store products are shown in Laveen, Ariz. Safeway reports quarterly earns on Thursday, July 18, 2013. (AP Photo/Ross D. Franklin)

PLEASANTON, Calif. (AP) -- Grocery store chain Safeway Inc. says its profit fell in the second quarter on one-time costs partly related to a deal to sell its Canadian operations

Still, the grocer's adjusted results topped Wall Street expectations.

For the period ended June 15, net income fell to $8.4 million, or 3 cents per share. That compares with net income of $122.7 million, or 51 cents per share, a year ago.

Adjusted for one-time items, net income totaled 51 cents per share. Analysts expected 50 cents per share, according to FactSet.

The company said revenue at stores open at a least a year, a key retail metric, rose 1.2 percent.

Revenue fell nearly 2 percent to $8.7 billion from $8.83 billion, hurt by lower fuel sales.