Lowe's Q2 Net Up 10.4 Percent
MOORESVILLE, N.C.-With home improvement continuing its upward trend, Lowe's logged a 10.4 percent jump in second-quarter net income, which totaled $1 billion.
Net sales in the quarter, which ended on Aug. 1, rose 5.7 percent to $16.6 billion, including a pickup of 4.4 percent in same-store sales. Along with the ongoing strength in home improvement spending, Robert Niblock, chairman, president and CEO, said Lowe's was able to recover most of the outdoor product sales lost to the severe weather conditions early in the first quarter.
Gross margin tacked on 20 basis points in the quarter, finishing at 34.6 percent. Selling, general and administrative expenses rose 3.7 percent in dollars but dropped 40 basis points as a percentage of sales, to 21.3 percent.
Looking ahead, Niblock said home improvement spending should continue to trend upward as the job market continues to strengthen and incomes continue to increase. At the same time, he said the company is reducing its projection for sales growth for the full fiscal year, due to the retailer's sales performance to date. Total net sales for the year are now expected to rise by about 4.5 percent, including a gain in same-store sales of 3.5 percent.