Lowe's Builds Up Sales, Sees Modest Improvements in 2015

By Michael Calia 

Lowe's Cos. said its sales rose in the fourth quarter as the retailer said the home-improvement industry should experience continued, if modest, growth this year.

The company's shares rose 2.5% in recent premarket trading as its results surpassed analysts' expectations.

Lowe's also offered its outlook for its new year. The company said it expects per-share earnings of $3.29 for the 2015 fiscal year ended Jan. 29, 2016, and total sales to rise 4.5% to 5%. Analysts polled by Thomson Reuters had projected $3.28 a share in earnings and 5% revenue growth.

Lowe's report comes a day after larger competitor Home Depot Inc. posted results that easily topped expectations, including a 7.9% jump in same-store sales, as U.S. stores drove growth. On Wednesday, Lowe's reported a 7.3% increase in sales at stores open at least a year during the most recent quarter. Sales at U.S. Lowe's stores rose 7.4%.

Chief Executive Robert A. Niblock said in a release Wednesday that "macroeconomic fundamentals are aligned for modestly stronger home-improvement industry growth in 2015."

Overall, Lowe's posted a profit of $450 million, or 46 cents a share, in the most recent quarter, up from $306 million, or 18 cents a share, a year earlier.

Net sales rose 7.6% to $12.54 billion

Analysts had expected earnings of 43 cents a share and revenue of $12.31 billion in revenue for the period.

Write to Michael Calia at [e-mail]

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