Wednesday, October 7th7.3°C

Lowe's 2nd-quarter profit climbs on improving weather; trims full-year revenue outlook

MOORESVILLE, N.C. - Lowe's second-quarter net income increased 10 per cent, bolstered by improving weather.

The home improvement company's performance beat analysts' expectations, but the Mooresville, North Carolina, company lowered its full-year revenue outlook slightly, citing its year-to-date sales and prior assumptions for the second half.

Shares fell in premarket trading on Wednesday.

Spring is the most important season for home-improvement retailers, as homeowners and others work on their yards and gardens. While the season started off a bit cold and rainy, weather improved and shoppers headed out to stores to pick up supplies.

For the three months ended Aug. 1, Lowe's Cos. earned $1.04 billion, or $1.04 per share. A year earlier it earned $941 million, or 88 cents per share.

Analysts, on average, expected earnings of $1.02 per share, according to a FactSet survey.

Revenue rose 6 per cent to $16.6 billion from $15.71 billion, topping Wall Street's $16.57 billion forecast.

Sales at stores open at least a year, a key indicator of a retailer's health, climbed 4.4 per cent. This figure excludes results from stores recently opened or closed.

Chairman, President and CEO Robert Niblock said in a statement that the improving weather helped Lowe's recover most of the outdoor product sales it missed in the first quarter, when weather was less favourable.

"We believe home improvement spending will continue to progress in tandem with strengthening job and income growth," Niblock said.

On Tuesday larger rival Home Depot Inc.'s second-quarter results also topped Wall street's view due in large part to a rebound in the spring selling season.

Looking ahead, Lowe's now anticipates full-year revenue rising about 4.5 per cent. Its prior outlook was for an approximately 5 per cent increase. Based on fiscal 2013's revenue of $53.42 billion, the new guidance implies revenue of $55.8 billion. Lowe's reaffirmed its forecast for full-year earnings of about $2.63 per share.

Analysts are calling for fiscal 2014 earnings of $2.62 per share on revenue of $55.79 billion.

The company's stock declined $2.17, or 4.2 per cent, to $49.35 before the market open.

The Canadian Press

Read more Business News

Recent Trending

Today's Market
S&P TSX13647.26+95.06
S&P CDNX538.69+8.78
S&P 5001979.92-7.13
CDN Dollar0.7680+0.0008
Natural Gas2.463-0.007

Okanagan Companies
Pacific Safety0.21-0.01
QHR Technologies Inc1.25+0.03
Metalex Ventures0.05-0.01
Russel Metals23.31+0.80
Copper Mountain Mining0.56+0.06
Colorado Resources0.07-0.01
ReliaBrand Inc0.0031-0.0009
Sunrise Resources Ltd0.02+0.00
Mission Ready Services0.085-0.010
Decisive Dividend Corp3.06-0.43
Diamcor Mining0.90+0.00


2349918209-1329 K.L.O. Road
more details
Click here to feature your property
Please wait... loading

Perfect (reno'd) home

Photo: Thinkstock.comHow many times have you found a home in the perfect location, but it needs too much work as per the home inspection? There is a great program available through most lenders that w...

Living beyond 100

Photo: ContributedThere was a time most careers involved an apprenticeship of one sort another. Some official, others involving years of servitude, and others time simply spent watching and emulating ...

5 Claim misconceptions

Photo: Thinkstock.comIf you have been hurt in an accident or as a result of medical negligence you will likely look to your friends and family for some advice on how to deal with the situation. These ...



Member of BC Press Council