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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Retail

Lowe's Companies' earnings fall short despite strong sales

Second quarter resutls from the home improvements chain were a mixed bag, with earnings a tad below expectations but like-for-like sales stronger than expected.

Home improvement chain Lowe’s (NYSE:LOW) saw sales and earnings rise year-on-year in the three months to the end of July.

Net earnings of US$1.13bn were up 8.4% on the year before, while diluted earnings per share (EPS) rose 15.4% to US$1.20 from US$1.03 in the corresponding quarter of 2014.

The EPS number was a few cents shy of the median forecast of US$1.24 among analysts covering the stock.

Sales for the second quarter of the company’s fiscal year climbed 4.5% to US$17.3bn, a shade ahead of market expectations, from US$16.6bn a year earlier, while comparable, or like-for-like, sales rose 4.3%. Analysts had expected like-for-like sales to grow by 3.9%.

“We posted solid results for the quarter and were able to capitalize on big-ticket market share opportunities with strong growth in categories like appliances and outdoor power equipment," commented Robert Niblock, Lowe's chairman, president and chief executive officer (CEO).

Diluted EPS for the first half of the year were up 15.9% on a year earlier at US$1.90, and were in line with expectations, Niblock said.

The shares were down nearly 2% in pre-market trading.

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