Lowe's Posts Better-Than-Expected Quarter

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 [e-mail]

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November 18, 2015 07:15 ET (12:15 GMT)

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