Lowe's Net Drops 44 Percent in Third Quarter
November 14, 2011,
MOORESVILLE, N.C.-Rising operating expenses and charges related to store closings and discontinued projects hammered Lowe's bottom line in the third quarter, reducing net income by 44 percent to $225 million.
Selling, general and administrative expenses jumped 10.3 percent in dollars and 197 basis points as a percentage of sales in the quarter, which ended on Oct. 28. Gross margin was down 99 basis points to 34.1 percent, and the above-mentioned charges reduced pretax income by $336 million.