Lowe’s crosses $20 billion mark in Q2

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Lowe’s crosses $20 billion mark in Q2

By HBSDealer Staff - 08/22/2018
While announcing plans to close all 99 Orchard Supply Hardware Stores, Mooresville, N.C.-based Lowe’s reported solid results as a delayed spring finally drove customers to stores.

Lowe’s reported the highest U.S. comp-store sales gain – 5.2% -- since the first quarter of 2016. Total sales increased increased 7.1% to $20.9 billion. Net earnings of $1.5 billion for the quarter ended Aug. 3 compared to earnings of $1.4 billion in the prior-year quarter.

The results were weighed down by a non-cash pre-tax charges of $230 million, related to closing the Orchard Supply Hardware business, which it purchased out or bankruptcy in 2013.

"We posted solid results this quarter by capitalizing on delayed spring demand," commented Marvin R. Ellison, Lowe's president and CEO. "We are committed to driving even stronger performance in the future by sharpening our focus on retail fundamentals and by limiting any projects and initiatives that take us away from our core mission of being a great omni-channel home improvement retailer.

At the end of the quarter, Lowe's operated 2,155 home improvement and hardware stores in the United States, Canada and Mexico representing 215.3 million square feet of retail selling space.

For the full year, the company now expects to perform as follows:

  • Total sales are expected to increase approximately 4.5%;

  • Comparable sales are expected to increase approximately 3%; and

  • Increasing home improvement store count by 9.