Executive Business Briefing

Here is a look at more of Thursday's top business stories:

Employee outlook index declines

WASHINGTON, Feb. 6 (UPI) -- The Gallup Organization and UBS said the employee outlook index fell 6 points to 60 in January from 66 in December as employees expressed increasing concerns about the prospects for their company in the coming year.

The index is now close to its August low of 58 and far below its initial baseline of 72.

All three dimensions of the Employee Outlook Index also declined.

The future company conditions index fell 9 points to 61 from 70 in December, the present company conditions index slid 7 points to 77 from 84 and the job security index dropped 2 points to 42 from 44.

This month, employees were asked whether their company conducts periodic formal performance reviews. Notably, 80 percent of those polled said their company conducted such evaluations, while 18 percent said it didn't.

Among this group, 52 percent said they are reviewed annually, 27 percent reported receiving a review every six months, and 13 percent said performance was reviewed monthly or more frequently.

Nearly two out of three employees, or 63 percent, said their supervisor or employer set specific performance goals for them and/or their team in 2002.

Gallup Chief Economist Dennis Jacobe said: "Gallup's workplace research has shown that companies have a better chance of achieving their goals if they set clear individual targets, provide financial incentives for reaching those targets, and recognize employees who meet their targets. Non-monetary recognition is an inexpensive way to improve morale and stimulate productivity -- goals that become more important than ever in sluggish economic periods."

Safeway posts loss

PLEASANTON, Calif., Feb. 6 (UPI) -- Safeway Inc., the nation's third-largest grocer, said it posted a fourth-quarter net loss of $1.1 billion, or $2.37 a share, as higher expenses and costs to sell an unprofitable Chicago store division pressured its results.

The company said its net loss compared with a year-ago net income of $353.6 million, or 70 cents a share.

On a continuing operations basis, Safeway posted a net loss of $344.8 million, or 78 cents a share.

In the fourth quarter, the company decided to sell Dominick's and exit the Chicago market due to union labor issues.

Analysts on Wall Street had been expecting the company to post a 78 cents profit, compared with an initial average forecast of 82 cents a share ahead of the company's Nov. 8 profit warning, according to Thomson First Call.

Safeway said its total sales increased to $10 billion from $9.9 billion, mainly as a result of new store openings. The sales at supermarkets open at least four full quarters or identical-store sales -- dipped 1.9 percent.

While the company did not issue earnings per share guidance, it said same-store sales trends had improved from the fourth quarter and gross margins had declined more than expected in the quarter to date, due to transitional issues related to the centralization of non-perishable marketing and procurement.

It said: "These transitional issues are expected to be resolved within the first quarter and operating and administrative expenses are expected to increase due primarily to increases in wage and benefit costs and pension expense. We continue to work to reduce costs in other areas to partially offset these increased costs."

Safeway operates 1,695 stores in the United States and Canada.

Sales rise at Limited Brands

COLUMBUS, Feb. 6 (UPI) -- Apparel and toiletries retailer Limited Brands Inc. said same-store sales, or sales at stores open at least a year, rose 2 percent in January from a year earlier.

The retailer, which operates several store chains under names including Victoria's Secret, Express and Bath & Body Works, said its total sales during the four-week selling period ended Feb. 1 rose to $563.9 million from $522 million last year.

In November, Limited said it would sell its Lerner New York chain -- also known as New York & Co. -- to an investor group as it focuses on other brands.

Sales rise at Claire's Stores

PEMBROKE PINES, Fla., Feb. 6 (UPI) -- Claire's Stores Inc., which sells costume jewelry and accessories, said same-store sales rose 8 percent in January.

Total sales for January were up 14 percent to $57.45 million. Fourth-quarter sales jumped 15 percent to $322.2 million, with same-store sales up 9 percent in the quarter, Claire's said.

It also said it is comfortable with its previous guidance for fourth-quarter earnings from continuing operations of 80 cents a share.

The company expects to report fourth-quarter results on March 13.