Lifestyle store sales help Safeway 1Q results

PLEASANTON, Calif. -- Safeway Inc., owner of Dominick's stores, said Thursday its first-quarter profit rose 11 percent, beating analyst expectations on sales from its Lifestyle format stores and the stronger Canadian dollar.

The grocery-store operator earned $193.4 million, or 44 cents per share, from $174.4 million, or 39 cents per share last year. Thomson Financial says analysts expected a profit of 42 cents per share.

Its revenue rose 7 percent to $10 billion from $9.32 billion last year. Analysts expected sales of $9.73 billion.

Pleasanton, Calif.-based Safeway said identical-store sales, or sales in stores open at least one year, rose 4.5 percent, or 2.9 percent excluding fuel.

The company says it lowered prices during the quarter to improve competitiveness.

Its shares rose 78 cents, or 2.8 percent, to $28.87 in morning trading.