Lowe’s 2Q Net rises 9%, beats estimates

Lowe's Cos. reported 9 per cent gain in second-quarter net income to $1.02 billion, or 67 cents a share, from $935 million, or 60 cents a share, a year ago. The profit beat analysts’ estimates owing to the addition of new stores that helped snatch sales from Home Depot Inc.

The second-largest U.S. home-improvement retailer said revenue grew 5.8 per cent to $14.17 billion from $13.39 billion in the year-ago period.

Analysts had anticipated per-share earnings of 61 cents on revenue of $14.13 billion.

Lowe’s new stores with brighter lighting and wider walkways, topped with better consumer-service helped gain market share from bigger rival, Home Depot Inc. during a period when demand for appliances and remodeling was low due to the worst housing slump in 16 years.

Lowe’s operates 1,400 stores, compared with Atlanta-based Home Depot’s 2,200 making the latter, the largest home-improvement retailer in the U.S.

The Mooresville, North Carolina-based home improvement retailer expects earnings of 43 cents to 45 cents per-share, in the third quarter with sales up 7-8 per cent from a year ago.

Sales for the fiscal year ending February 1 will go up around 6 per cent, said Lowe’s, revising its May forecast of 7 per cent. The company anticipates per-share earnings of $1.97 to $2.01, down from its prior view of $1.99 to $2.03 a share.

Lowe's shares went up 83 cents, or 3.1 percent, to $27.70 at 7:25 a.m. in New York. Before today, the stock had lost 14 percent this year, compared with 17 percent for Home Depot.