Lowe's Reports Loss, Takes $1.6 Billion in Charges Before Tax

   By Allison Prang 
 

Lowe's Companies Inc. (LOW) reported a loss for the fourth quarter as the company recorded $1.6 billion in charges before tax.

The company reported a net loss of $824 million, compared with a profit of $554 million for the comparable quarter a year prior. The company said it had a net loss of $1.03 a share, compared with a profit of 67 cents a share. Analysts polled by Refinitiv were expecting a profit of 35 cents a share.

The company's results included $1.6 billion in charges before tax. Lowe's said $952 million of that was from a goodwill impairment charge Lowe's took related to its operations in Canada.

Lowe's said adjusted earnings were 80 cents share, up from 74 cents a share. Analysts were expecting 79 cents a share.

Net sales rose 1% to $15.65 billion. Analysts were expecting $15.74 billion.

Comparable sales rose 1.7%. Analysts polled by Consensus Metrix were expecting them to rise 1.9%.

Chief Executive Marvin Ellison said in prepared remarks that "U.S. macroeconomic fundamentals remain sound for 2019" but said "we anticipate continued weakness in the Canadian housing market in the near-term."

Lowe's said it expects comparable sales to increase by about 3% in the 2019 fiscal year. The company expects about a 2% increase in total sales.

Write to Allison Prang at [e-mail]

(END) Dow Jones Newswires

February 27, 2019 06:36 ET (11:36 GMT)

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