By Ben Fox Rubin
NEW YORK (MarketWatch) — Lowe’s Cos. Inc.’s fiscal third-quarter earnings rose 26% as the home-improvement retailer’s same-store sales continued to grow.
The company (NYSE:LOW) raised its outlook for the year, now expecting income of $2.15 a share on sales growth of 6%, from its prior view of $2.10 a share in earnings and 5% sales growth. Same-store sales are now expected to rise 5%, from its previous estimate of 4.5%.
Despite sluggish consumer spending, home improvement stores such as Lowe’s have posted improved results this year due to a growing home construction market and new home sales. Rival Home Depot Inc. (NYSE:HD) Tuesday said its fiscal third-quarter profit jumped 43% as same-store sales and transaction volume grew.
“The home improvement industry is poised for persisting growth in the fourth quarter and further acceleration in 2014,” Lowe’s Chief Executive Robert A. Niblock said Wednesday.
Lowe’s sales have long underperformed Home Depot, and Lowe’s has been reviewing its product lines and resetting areas of its stores in a bid to catch up to its rival.
For the quarter ended Nov. 1, Lowe’s reported a profit of $499 million, or 47 cents a share, up from $396 million, or 35 cents a share, a year ago. Sales rose 7.3% to $12.96 billion.
Lowe’s Reports Record Third Quarter Earnings – Third Quarter 2006 Diluted Earnings Per Share Increased 15 Percent –
Lowe’s Companies, Inc. (NYSE: LOW), the world’s second largest home improvement retailer, today reported net earnings of $716 million for the quarter ended November 3, 2006, a 10.8 percent increase over the same period a year ago. Diluted earnings per share increased 15.0 percent to $0.46 from $0.40 in the third quarter of 2005. For the nine months ended November 3, 2006, net earnings grew 20.3 percent to $2.49 billion while diluted earnings per share increased 23.3 percent to $1.59. Sales for the quarter increased 5.8 percent to $11.2 billion, up from $10.6 billion in the third quarter of 2005.