X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MOORESVILLE, NC-Second-quarter profits increased 11% at Lowe’s Cos. Inc., but the nation’s second largest home improvement chain warned that earnings for the remainder of the year could come up short as consumers continue to cope with a sluggish housing market, higher energy costs and rising interest rates.

The Mooresville, NC retailer, which opened 24 stores during the quarter, said net income for the three months ending Aug. 4 rose to $935 million, or 60 cents per share, from $839 million, or 52 cents per share, in the same period a year ago. The company said sales were also up more than 12% to $13.4 billion due largely to market gains in flooring, appliances, outdoor power equipment and cabinets. Sales at stores opened at least a year were also up 3.3% for the period, the company reported.

But a slowdown in the housing market combined with higher fuel prices and rising interest rates could have an impact on sales at the firm’s 1,281 stores, the company said. In response to that projected slowdown, Lowe’s cut its full-year sales growth forecast from 13% to 11%, saying continued pressure in the housing and home improvement market could impact store sales. Third-quarter earnings were expected to come in at between 45 cents and 48 cents per share with same-store sales ranging from flat to up by 2%, the company said.

“Near-term pressures on the US consumer have led to a more cautious outlook for the balance of the year,” said Robert Niblock, Lowe’s chairman and chief executive officer. Niblock said he remained confident about the industry’s long-term prospects due to continued low home mortgage rates and improving employment rates.

For the year, the company anticipates profit between $2 and $2.07 per share with same-store sales growth of between 2% to 3%. That forecast was down from the company’s May projections when it said it anticipated profits of between $2.07 to $2.11 per share and same-store sales gains of 4% to 5%.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.