Lowe’s Cos. Announces 18 Percent Fiscal First-Quarter Profit Drop
The famous home-improvement retailer Lowe’s Cos. announced an 18 percent drop in its fiscal first-quarter profit. The current situation is the result of today’s sales environment as well as the market, rising food and fuel prices.
The Wall Street Journal posts some statistical details.
The Mooresville, N.C., retailer said same-store sales for the quarter ended May 2 were down 8.4%, less than its February guidance of a 5% to 7% drop. Lowe’s said it now expects full-year earnings of $1.45 to $1.55 a share on revenue growth of 1%. In February, it provided full-year earnings guidance of $1.50 to $1.58 a share on revenue growth of 3%. The mean estimate of analysts surveyed by Thomson Reuters is for earnings of $1.54 a share on 2% revenue growth.
Not only don’t newly opened branches of Lowe’s Cos. meet expectations, but some stores are also being closed as a result the economic slowdown.
But some analysts have suggested Lowe’s should slow its expansion even more, noting that some newer stores aren’t meeting expectations in the tough environment. Larger rival Home Depot Inc., expected to report results Tuesday, has reacted to the economic slowdown by closing 14 stores and scaling back expansion efforts to a 1.5% growth rate.
Photo: © nyer_28
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