Lowe’s 4Q net income tops expectations


MOORESVILLE, N.C. (AP) — Home improvement retailer Lowe’s Cos. said Monday that cleanup efforts after Superstorm Sandy and its new pricing strategy helped its fourth-quarter net income surpass expectations.

Its net income fell 11 percent from last year’s quarter, which included an extra week of revenue. Its earnings forecast for the year was below expectations but its revenue projection beat the current consensus.

Its shares rose 83 cents, or 2.2 percent, to $38.50 in premarket trading.

Lowe’s has revamped its pricing structure, offering what it says are permanent low prices on many items across the store instead of fleeting discounts. In addition, the housing market has been slowly improving, with home sales and prices rising. Home improvement retailers such as Lowe’s are benefiting as people start spending more on their homes.

Lowe’s net income totaled $288 million, or 26 cents per share, for the three months ended Feb. 1. That’s down from $322 million, or 26 cents per share, a year ago. Analysts expected 23 cents per share, according to FactSet.

There were 11 percent fewer shares outstanding in the latest quarter than a year ago. That increases the value of each share. An extra week in the quarter last year had boosted year-ago earnings by 5 cents per share.

Revenue fell 5 percent to $11.05 billion from $11.63 billion. Analysts expected $10.85 billion. Revenue in stores open at least one year rose 1.9 percent. The measure is a key gauge of a retailer’s fiscal health because it excludes stores that open or close during the year.

Morningstar analyst Peter Wahlstrom said the quarter was generally good and in line with his expectations, helped by better gross margins — the amount of each dollar in revenue a company actually keeps — and a lower share count.

For the fiscal year, net income rose 7 percent to $1.96 billion, or $1.69 per share, from $1.84 billion, or $1.43 per share.

Revenue edged up less than 1 percent to $50.52 billion from $50.21 billion last year.

Lowe’s, which operates 1,754 stores in the U.S., Canada and Mexico, expects fiscal 2013 net income of $2.05 per share. Analysts expect $2.10 per share.

It expects revenue to rise 4 percent, implying revenue of $52.54 billion. Analysts expect $51.69 billion.

Lowe’s larger rival Home Depot reports fourth quarter results on Tuesday.


Reader Comments ...


Next Up in Business

NASCAR’s Petty helps open Spectrum
NASCAR’s Petty helps open Spectrum

Although the Spectrum Brands Global Auto Care center in Vandalia has been preparing, packaging and shipping products for months, it got an official opening Thursday, with a little help from some friends — including a NASCAR legend. Richard Petty has been associated with STP gas and oil treatment products for some 46 years. “I’ve followed...
Longtime Urbana auto dealer sold to SVG Motors
Longtime Urbana auto dealer sold to SVG Motors

A growing chain of car dealerships recently stepped in to buy one of the longest-running family owned businesses in Urbana, with plans to add additional employees and renovate the business. SVG Motors, an auto dealer with locations in Dayton, Eaton and Greenville, has purchased Trenor Motors for an undisclosed price. READ MORE: Springfield Airport...
Swedish clothing retailer to open at local outlet mall
Swedish clothing retailer to open at local outlet mall

Swedish clothing retailer H&M is opening a location at the Tanger Outlet in Jeffersonville. The retailer, known for its clothing for men, women, teenagers and children, will open at the Tanger Outlet at 8000 Factory Shops Blvd. on July 27. The first 200 shoppers in line will receive giveaway prizes up to $300, according to the retailer. Customers can...
DHL Supply Chain to close Englewood site, impacting 85 employees
DHL Supply Chain to close Englewood site, impacting 85 employees

DHL Supply Chain will close its Englewood location later this year, impacting 85 workers at the site. The company sent a WARN notice to the Ohio Department of Job & Family Services, announcing they plan to close a DHL Supply Chain facility located at 71 Lau Parkway in Englewood. The location is expected to close on Sept. 18, according to the letter...
Air Force adds GE to $409M contract
Air Force adds GE to $409M contract

The Air Force Research Laboratory has added General Electric Co. among at least three companies part of a seven-year, $409 million contract to develop “next generation” thermal, power and control technologies. RELATED: GE Aviation acquires robotics maker The initial GE order is worth $106,000 which will continue to support integrated power...
More Stories