MOORESVILLE, N.C.–Second-quarter net income for Lowe’s totaled $830 million, essentially flat compared to the second quarter of last year, in what Robert Niblock, chairman, president and CEO, characterized as a disappointing result.
Net sales for the home-improvement chain rose 1.3 percent to $14.5 billion, which included a same-store sales decrease of 0.3 percent. “Despite some recovery in our seasonal business, our performance for the quarter [which ended on July 29] fell short of our expectations,” Niblock said.
Lowe’s gross margin declined 37 basis points to 34.5 percent. Selling, general and administrative expenses edged up 1.3 percent in dollars and were flat as a percentage of sales, finishing the quarter at 22.2 percent.
The company also projected somewhat lagging results for the balance of the fiscal year. It said net sales would rise about 2 percent for both the third quarter and the fiscal year as a whole. Same-store sales are expected to be flat in the third quarter and are projected to fall about 1 percent for the entire fiscal year.
“We are working diligently to improve sales and profitability in the near term in a way that we believe will generate sustained customer preference and shareholder value,” Niblock said.