Lowe’s Q2 Net Climbs on Sales of Big-Ticket Products

Market-share gains in appliances and outdoor power equipment help bottom line
August 19, 2015David Gill

LowesMOORESVILLE, N.C.-With sales of higher-priced items on the rise, Lowe’s posted an 8.4 percent increase in second-quarter net income, which totaled $1.1 billion.

Total net sales in the quarter, which ended on July 31, were $17.3 billion, up 4.5 percent and including a gain of 4.3 percent in same-store sales. Robert Niblock, Lowe’s chairman, president and CEO, said the home-improvement retailer capitalized on market share opportunities in big-ticket items such as appliances and outdoor power equipment.

Gross margin was down eight basis points to 34.5 percent. Selling, general and administrative expenses edged up 2.6 percent in dollars, but were down 39 basis points as a percentage of sales, to 20.9 percent.

For the full fiscal year, Lowe’s said it now expects total sales to rise by from 4.5 to 5 percent, with a similar gain in same-store sales.

In HFN’s list of the Top 50 Home Retailers, Lowe’s finished seventh with home furnishings sales of $4.46 billion in 2014, an increase of 5.3 percent from 2013.

David GillDavid Gill | Contributing Editor

David Gill is a contributing editor to HFN.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.