THE NEWS: Profit at grocery store chain Safeway Inc. fell in the second quarter, partly on a tax charge related to a deal to sell its Canadian operations. But adjusted results topped Wall Street expectations.
CONTEXT: Safeway and other traditional supermarket chains have been working to focus operations and keep costs low to fight off competition from big-box discounters, along with drug stores and dollar stores that have expanded grocery sections.
ADJUSTED VIEW: Safeway now expects net income, excluding one-time items, to be at the lower end of its previously expected range of $2.25 to $2.45 per share. Analysts expect $2.27 per share.