Mooresville, NC, May 22, 2006--Lowe's reported first-quarter earnings that were up 44 percent as revenue rose 20 percent.
The company’s earnings for the quarter were $841 million, or $1.06 per share, up from $586 million, or $0.73 per share, during the same period last year.
Sales were up 20 percent to $11.92 billion from $9.91 billion last year.
Analysts were expectiong earnings pf $0.94 a share on revenue of $11.84 billion.
Same store sales grew 5.7 percent during the quarter.
"With great execution and excellent customer service, we leveraged our ongoing investments in productivity and drove solid sales and strong earnings growth in the quarter," explained Robert A. Niblock, Lowe's chairman, president and CEO. "Industry-leading market share gains in appliances and outdoor power equipment are evidence of our compelling product offering and our success in meeting customers' needs."
"Recent data suggest continued favorable trends in employment levels and income growth which will offset some of the monetary pressures consumers are facing such as rising fuel prices and interest rates," Niblock added. "As trends in the housing market normalize from the rapid growth experienced over the past few years, we believe we have the programs in place to continue to capture share and deliver solid earnings growth."
During the quarter, Lowe's opened 24 new stores. As of May 5, 2006, Lowe's operated 1,258 stores in 49 states representing 142.8 million square feet of retail selling space, a 12.9 percent increase over last year.
Fiscal 2006 annual and fourth quarter comparisons will be negatively impacted by a 52 versus 53 week and 13 versus 14 week comparison, respectively. In addition, our 2006 quarterly comparisons will be impacted by a shift in comparable weeks to 2005. This week shift positively impacts the first quarter and is offset by negative impacts in the second and fourth quarters. The week shift does not impact comparable store sales results. Our 2006 guidance contemplates these factors.
Second Quarter 2006 (comparisons to second quarter 2005)
* The company expects to open 24 new stores reflecting square footage
growth of approximately 12 percent
* Total sales are expected to increase approximately 12 percent (impacted
by the week shift described above)
* The company expects to report a comparable store sales increase of 3 to
5 percent
* Operating margin (defined as gross margin less SG&A and depreciation) is
expected to increase 10 to 20 basis points
* Store opening costs are expected to be approximately $27 million
* Diluted earnings per share of $1.21 to $1.24 are expected
* Lowe's second quarter ends on August 4, 2006 with operating results to
be publicly released on Monday, August 21, 2006
Fiscal Year 2006 - a 52-week Year (comparisons to fiscal year 2005 - a 53-week year)
* The company expects to open 155 stores in 2006 reflecting total square
footage growth of approximately 12 percent
* Total sales are expected to increase approximately 13 percent for the
year (52 weeks versus 53 weeks in 2005)
* The company expects to report a comparable store sales increase of 4 to
5 percent
* Operating margin (defined as gross margin less SG&A and depreciation) is
expected to increase approximately 40 basis points
* Store opening costs are expected to be approximately $135 million
* Diluted earnings per share of $4.14 to $4.22 are expected for the fiscal
year ending February 2, 2007
