Lowe's Profit Misses Views

By Chelsey Dulaney 

Lowe's Cos. on Wednesday reported weaker-than-expected profit growth in its second quarter, though the retailer logged a 4.6% increase in a key sales metric for its U.S. home improvement stores amid sales of big-ticket items like appliances and outdoor power equipment.

The company backed its full-year outlook.

In a weak retail environment, home improvement stores like Lowe's and Home Depot Inc. have been an outlier with consumers showing more of a willingness to spend money replacing windows and upgrading countertops than to splurge on fashion and everyday goods.

Lowe's said its same-store sales at locations open at least a year rose 4.3% in the quarter ended July 31. Sales at U.S. Lowe's stores rose 4.6%.

Overall, Lowe's posted a profit of $1.13 billion, or $1.20 a share, up from $1.04 billion, or $1.04 a share, a year earlier.

Net sales grew 4.5% to $17.35 billion.

Analysts had expected earnings of $1.24 a share and revenue of $17.3 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 and sales, also citing spending from homeowners on big-ticket items. But Wal-Mart Stores Inc. said its quarterly profit fell 15% from a year ago and the company lowered its earnings targets for the fiscal year.

Write to Chelsey Dulaney at [e-mail]

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(END) Dow Jones Newswires

August 19, 2015 06:34 ET (10:34 GMT)

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