Lowe's First-Quarter Net Drops 5.7 Percent

MOORESVILLE, N.C.-First-quarter net income for Lowe's fell 5.7 percent to $461 million, as the home-improvement retailer struggled through a decline in sales and a bump-up in expenses.

Net sales decreased 1.6 percent to $12.2 billion in the quarter, which ended on April 29, and which included a 3.3 percent fall in same-store sales. Selling, general and administrative expenses increased 0.8 percent in dollars and 62 basis points as a percentage of sales, to 25.6 percent, and interest expense increased 7.3 percent. Lowe's was able to improve its gross margin by 26 basis points to 35.4 percent, thanks to a 2 percent drop in cost of sales.

Robert Niblock, Lowe's chairman and CEO, said the retailer "faced ongoing economic pressures, unfavorable weather conditions and tough comparisons to last year's government-stimulus programs. We are building momentum in 2011 behind our transformation from a home-improvement retailer to a home-improvement company."

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

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