Lowe's Net Edges Up in Second Quarter
May 17, 2010,
MOORESVILLE, N.C.-Net income for Lowe's totaled $489 million in the second quarter, an increase of 2.7 percent from the second quarter of a year ago.
The rise in the bottom line came about largely because the home-improvement retailer's net sales rose 4.7 percent to $12.4 billion in the quarter, which included a 2.4 percent gain in same-store sales. Robert Niblock, Lowe's chairman and chief executive officer, said shoppers have shown more interest in home-improvement projects as the economy has turned around, especially in those projects that involve purchases of big-ticket items.
Lowe's gross margin was down 28 basis points to 35.2 percent. Total expenses increased 4 percent (including a 4.5 percent rise in selling, general and administrative but dropped 20 basis points as a percentage of sales.
The company said it now expects sales for all of fiscal year 2010 to rise from 5 to 7 percent, with a 2 to 4 percent gain in same-store sales.