Lowe’s Q2 Net Climbs on Sales of Big-Ticket Products
Posted on August 19, 2015 by
MOORESVILLE, 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.