MOORESVILLE, N.C. (AP) — Lowe’s Cos., the No. 2 home-improvement retailer, said Monday its third-quarter profit fell 30 percent as customers continued to delay large purchases amid a weak economy. But Lowe’s said some of the hardest hit home markets are stabilizing.
Profit in the quarter ended Oct. 30 was $344 million, or 23 cents per share, down from $488 million, or 33 cents per share, in the same quarter last year. Results in the latest quarter included one-time costs related to closing some stores and no longer pursuing some future stores, as well as a tax benefit. Excluding those items, profit was 24 cents per share, matching analyst expectations according to a poll by Thomson Reuters.
Revenue edged down 3 percent to $11.38 billion from $11.73 billion, narrowly beating an average analyst estimate of $11.28 billion.
Sales in stores open at least one year fell 7.5 percent in the quarter. The metric is considered a key measurement of retailer health.
“The broad-based pressures of the macro environment are clearly evident in our sales as consumers continue to delay large purchases until they feel better about the economic outlook,” said CEO Robert A. Niblock in a statement.
Home-improvement retailers have seen sales slip as consumers cut back on big-ticket remodeling projects amid the recession. Although the U.S. housing market is stabilizing, after a nearly three-year decline, home prices remain far below their peak.
Niblock said the company is beginning to see better performance in some of the hardest-hit housing markets, including California, Florida and parts of the desert Southwest.
For the fourth quarter, the company predicts sales will be flat compared with the $9.98 billion reported in the year-ago quarter. Analysts expect revenue of $9.91 billion.
Lowe’s expects earnings of 9 cents to 13 cents per share for the fourth quarter. Analysts expect earnings of 10 cents per share.
For the year, the company expects sales to fall 2 percent to 3 percent, implying revenue of $46.75 billion to $47.24 billion. Analysts expect revenue of $46.84 billion.
Lowe’s projects full-year earnings of $1.16 to $1.20 per share, while analysts expect $1.20 per share.
Business
<img src=" http://www.joplinglobeonline.com/images/zope/monday.gif" border=0> Lowe’s 3Q profit falls but co. sees signs for hope
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