Lowe's Profit Misses Views
August 19 2015 - 6:49AM
Dow Jones News
By Chelsey Dulaney
Lowe's Cos. on Wednesday reported weaker-than-expected profit
growth in its second quarter, though the retailer logged a 4.6%
increase in a key sales metric for its U.S. home improvement stores
amid sales of big-ticket items like appliances and outdoor power
equipment.
The company backed its full-year outlook.
In a weak retail environment, home improvement stores like
Lowe's and Home Depot Inc. have been an outlier with consumers
showing more of a willingness to spend money replacing windows and
upgrading countertops than to splurge on fashion and everyday
goods.
Lowe's said its same-store sales at locations open at least a
year rose 4.3% in the quarter ended July 31. Sales at U.S. Lowe's
stores rose 4.6%.
Overall, Lowe's posted a profit of $1.13 billion, or $1.20 a
share, up from $1.04 billion, or $1.04 a share, a year earlier.
Net sales grew 4.5% to $17.35 billion.
Analysts had expected earnings of $1.24 a share and revenue of
$17.3 billion in revenue for the period, according to Thomson
Reuters.
Lowe's results come amid a string of mixed results from
retailers recently.
Home Depot Inc. on Tuesday posted higher profit and sales, also
citing spending from homeowners on big-ticket items. But Wal-Mart
Stores Inc. said its quarterly profit fell 15% from a year ago and
the company lowered its earnings targets for the fiscal year.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
August 19, 2015 06:34 ET (10:34 GMT)
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