Lowe's Posts Better-Than-Expected Quarter
18 November 2015 - 11:30PM
Dow Jones News
Lowe's Cos. on Wednesday reported better-than-expected profit in
its third quarter, with more customers visiting the home
improvement retailer.
During the third quarter, Lowe's said its same-store sales at
locations open at least a year rose 4.6%. Sales at U.S. Lowe's
stores rose 5%, a stronger showing than the roughly 4% increase
forecast by analysts at Credit Suisse.
"Comparable sales growth was driven by gains in both
transactions and average ticket, while our focus on productivity
and profitability also allowed us to deliver strong earnings per
share growth," said Lowe's Chief Executive Robert A. Niblock.
The company backed its full-year outlook.
In a weak retail environment, home improvement stores like
Lowe's and rival Home Depot Inc. have been outliers, with consumers
showing more of a willingness to spend money replacing windows and
upgrading countertops than to splurge on fashion and everyday
goods.
Overall, Lowe's posted a profit of $736 million, or 80 cents a
share, up from $585 million, or 59 cents a share, a year
earlier.
Net sales grew 5% to $14.36 billion.
Analysts had expected earnings of 78 cents a share and revenue
of $14.34 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
than expected.
Wal-Mart Stores Inc. issued upbeat earnings guidance though
overall profit and revenue edged lower in its latest quarter. And
lackluster earnings reports from Macy's Inc. and Nordstrom Inc.
have raised concerns about consumer spending this holiday
season.
Lowe's added on Wednesday that during its latest quarter it
repurchased $750 million of stock under its share repurchase
program.
Write to Ezequiel Minaya at ezequiel.minaya@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 18, 2015 07:15 ET (12:15 GMT)
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