The company was hit by declining housing markets in California and Florida, where it experienced the bulk of its poor sales, though effects were felt nationwide. A drought in some states hurt sales in the chain's nursery department.
Robert Niblock, the retailer's chairman and CEO, called the challenges in the home-improvement sector "greater than anticipated." "They are likely to last longer than we expected," he said, venturing that poor economic conditions could continue into next year.
For the fourth quarter, executives predict a 3%-to-5% same-store sales decline and a total-sales increase of 3%. For the full year, total sales are expected to rise 3% to 4%, and management is forecasting a 4% same-store sales drop.
Despite its results, Lowe's continues to open new stores, with 153 planned for the fiscal year, including 72 this quarter on top of the 1,450 it currently operates. The company is also on track to complete 116 renovations this year and has 120 planned for 2008.
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