Lowe’s posts a Q4 net loss
Mooresville, N.C.-based Lowe’s fourth quarter performance was weighed down by an impairment charge in Canada and various store closing costs on its way to an $824 million net loss for the period ended Feb. 1.
Lowe’s Q4 net sales were $15.6 billion, up from $15.5 billion in the same quarter last year. Comparable-store sales for U.S. stores were up 2.4%.
CEO Marvin Ellison said he was encouraged by the direction of same store sales, which increased from the third quarter. In January, the U.S. home improvement comps increased to 5.8%, he said.
[Read the full press release here.]
“Although we have remaining work to do, we are pleased with the results we are seeing in early spring categories, which is evidence that we are focused on the right actions at this stage of our transformation,” said Ellison.
For the full year, Lowe’s turned in net sales of $71.3 billion, up from $68.6 billion in the prior year. The company’s net earnings for the year declined to $2.3 billion, down from $3.4 billion.
As of Feb. 1, 2019, the company operated 2,015 home improvement and hardware stores in North America.
Ellison’s prepared statement added: “U.S. macroeconomic fundamentals remain sound for 2019, and we will continue to implement process and technology improvements to capitalize on the immediate opportunity to improve results. We anticipate continued weakness in the Canadian housing market in the near-term, but remain confident in our market position in Canada and the long-term potential of that business.”
Under Ellison, Lowe’s has been sharpening its focus and cutting underperforming stores and ancillary businesses. The company announced plans to close 47 stores in November. That followed its plan to close the Orchard Supply Hardware chain.
More recently, Lowe’s exited its Iris smart home business, which for years was a prominent end-cap item for the home improvement retailer.
Lowe’s earnings followed by one day the earnings report of rival Home Depot, which reported net income of $2.3 billion and U.S. comp-store sales of 3.7%.
Lowe’s Q4 net sales were $15.6 billion, up from $15.5 billion in the same quarter last year. Comparable-store sales for U.S. stores were up 2.4%.
CEO Marvin Ellison said he was encouraged by the direction of same store sales, which increased from the third quarter. In January, the U.S. home improvement comps increased to 5.8%, he said.
[Read the full press release here.]
“Although we have remaining work to do, we are pleased with the results we are seeing in early spring categories, which is evidence that we are focused on the right actions at this stage of our transformation,” said Ellison.
For the full year, Lowe’s turned in net sales of $71.3 billion, up from $68.6 billion in the prior year. The company’s net earnings for the year declined to $2.3 billion, down from $3.4 billion.
As of Feb. 1, 2019, the company operated 2,015 home improvement and hardware stores in North America.
Ellison’s prepared statement added: “U.S. macroeconomic fundamentals remain sound for 2019, and we will continue to implement process and technology improvements to capitalize on the immediate opportunity to improve results. We anticipate continued weakness in the Canadian housing market in the near-term, but remain confident in our market position in Canada and the long-term potential of that business.”
Under Ellison, Lowe’s has been sharpening its focus and cutting underperforming stores and ancillary businesses. The company announced plans to close 47 stores in November. That followed its plan to close the Orchard Supply Hardware chain.
More recently, Lowe’s exited its Iris smart home business, which for years was a prominent end-cap item for the home improvement retailer.
Lowe’s earnings followed by one day the earnings report of rival Home Depot, which reported net income of $2.3 billion and U.S. comp-store sales of 3.7%.