A day after Home Depot reported strong second-quarter results, it was Lowe's turn to deliver strong quarterly earnings.
And the Mooresville, North Carolina-based retail giant did just that. The company reported net earnings of $1.04 billion for the quarter ended Aug. 1, marking a 10.4% increase over the second quarter last year. Sales for the quarter were up 5.7% to $16.6 billion, as comparable-store sales were up 4.4%.
"We were able to recover most of the outdoor product sales missed in the first quarter due to unfavorable weather conditions," said Robert Niblock, president and CEO.
For Lowe's, the expectation is that home improvement spending will continue to grow in concert with job and income growth. The company's forecast for earnings per share remains unchanged, but Lowe's made a "modest reduction" to its sales outlook for the year, based partly on year-to-date performance. For the year, total sales are expected to increase about 4.5%, as comps are expected to increase about 3.5%
The company operated 1,837 home improvement and hardware stores as of Aug. 1, representing 200.8 million square feet of retail space.