Lowe’s reports Q2 gains
Riding what CEO Marvin Ellison calls an “ongoing transformation,” Mooresville, N.C.-based Lowe’s reported a slight Q2 net sales gain along with a 10% increase in net earnings.
The company posted net sales of $21.0 billion in the quarter, up 0.5% from $20.9 billion in the same quarter last year. Comp-store sales for the U.S. home improvement business increased 3.2% -- giving Lowe’s a slight Q2 edge over rival Home Depot, which reported earnings a day earlier.
A research note from retail analyst Peter Benedict of Baird & Co. pointed to comp-store sales momentum and a second straight quarter of a favorable comp-store sales comparison to rival Home Depot. “While gross margin declines cannot be ignored, initiatives to engage customers as process improvement/redesign and merchandising enhancement efforts are being implemented across the business seem to be having some impact,” Benedict wrote.
CEO Ellison, the former high-ranking Home Depot executive, was upbeat in his comments. He described paint and the pro market as growth leaders. “Our transformation is ongoing, and our future is bright,” he said. “We are confident that we are on the right path to capitalize on solid demand in a healthy home improvement market and generate long-term profitable growth.”
At the end of the second quarter, the retailer operated 2,003 stores in the U.S. and Canada. That’s a net gain of one store, compared to the end of the first quarter
For the full year, total sales are expected to increase about 2%. Comparable store sales are expected to increase about 3%.
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Bottom line: Net earnings increased to $1.676 billion, up 10.2% from $1.520 billion in the second quarter last year.
What the CEO said: “We capitalized on spring demand, strong holiday event execution and growth in Paint and our Pro business to deliver strong second quarter results,” said CEO Marvin Ellison. “Despite lumber deflation and difficult weather, we are pleased that we delivered positive comparable sales in all 15 geographic regions of the U.S. This is a reflection of a solid macroeconomic backdrop and continued momentum executing our retail fundamentals framework.”
More information: Read the full earnings release here.
The company posted net sales of $21.0 billion in the quarter, up 0.5% from $20.9 billion in the same quarter last year. Comp-store sales for the U.S. home improvement business increased 3.2% -- giving Lowe’s a slight Q2 edge over rival Home Depot, which reported earnings a day earlier.
A research note from retail analyst Peter Benedict of Baird & Co. pointed to comp-store sales momentum and a second straight quarter of a favorable comp-store sales comparison to rival Home Depot. “While gross margin declines cannot be ignored, initiatives to engage customers as process improvement/redesign and merchandising enhancement efforts are being implemented across the business seem to be having some impact,” Benedict wrote.
CEO Ellison, the former high-ranking Home Depot executive, was upbeat in his comments. He described paint and the pro market as growth leaders. “Our transformation is ongoing, and our future is bright,” he said. “We are confident that we are on the right path to capitalize on solid demand in a healthy home improvement market and generate long-term profitable growth.”
At the end of the second quarter, the retailer operated 2,003 stores in the U.S. and Canada. That’s a net gain of one store, compared to the end of the first quarter
For the full year, total sales are expected to increase about 2%. Comparable store sales are expected to increase about 3%.
# # #
Bottom line: Net earnings increased to $1.676 billion, up 10.2% from $1.520 billion in the second quarter last year.
What the CEO said: “We capitalized on spring demand, strong holiday event execution and growth in Paint and our Pro business to deliver strong second quarter results,” said CEO Marvin Ellison. “Despite lumber deflation and difficult weather, we are pleased that we delivered positive comparable sales in all 15 geographic regions of the U.S. This is a reflection of a solid macroeconomic backdrop and continued momentum executing our retail fundamentals framework.”
More information: Read the full earnings release here.