Lowe's Q3 Net Jumps 26 Percent
MOORESVILLE, N.C.-An upward track in both sales and margin brought Lowe's a 26 percent gain in third-quarter net income, to $499 million.
The home-improvement retailer's net sales were up 7.3 percent to $13 billion in the quarter, which ended on Nov. 1. This included a pickup of 6.2 percent in same-store sales. Robert Niblock, Lowe's chairman, president and CEO, attributed the increases in checkouts to the company's "improved collaboration and execution within a strengthening home improvement market."
Gross margin was up 26 basis points to 34.6 percent. Selling, general and administrative expenses increased 5.3 percent in dollars but were down 47 basis points as a percentage of sales, to 24.6 percent.
Based on the third quarter, Lowe's said it is now projecting a gain in total sales of about 6 percent for this fiscal year as a whole, with a same-store sales increase of about 5 percent. "The home improvement industry is poised for persisting growth in the fourth quarter and further acceleration in 2014," Niblock said.