Mooresville, NC, May 16--Lowe's in the first quarter reported net earnings of $590 million, a 30.5 percent increase over the same period a year ago. Diluted earnings per share increased 32.1 percent to $0.74 from $0.56 in the first quarter of 2004.
Analysts were looking for $0.76 in the quarter.
Sales for the quarter increased 14.2 percent to $9.91 billion, up from $8.68 billion in the first quarter of 2004. Comparable store sales for the first quarter increased 3.8 percent.
"While an unusually cold, wet March in many parts of the country created challenges, our stores delivered another strong quarter," explained Robert A. Niblock, Lowe's chairman, president and CEO. "We achieved high single-digit comparable store sales in February and April, but they were offset by negative low single-digit comps in weather-affected March.
"We continue to make investments in new stores, improve existing stores and build the infrastructure to facilitate our expansion, and we remain optimistic about the outlook for the balance of the year," Niblock added. "Our Installed Sales, Special Order Sales, and Commercial Business Customers continue to drive our comparable store sales momentum, and we're working hard to continuously improve our customer's experience with inspiring products and great customer service."
During the quarter, Lowe's opened 27 new stores, including two relocations. As of April 29, 2005, Lowe's operated 1,112 stores in 48 states representing 126.5 million square feet of retail selling space, a 13.1 percent increase over last year.
The company issued the following outlook:
Second Quarter 2005 (comparisons to second quarter 2004)
- The company expects to open 27 stores reflecting square footage growth of approximately 14 percent
- Total sales are expected to increase 15 to 16 percent
- The company expects to report a comparable store sales increase of 4 to 6 percent
- Operating margin (defined as gross margin less SG&A and depreciation) is expected to be approximately flat as a percent to sales
- Store opening costs are expected to be approximately $22 million
- Diluted earnings per share of $1.00 to $1.02 are expected
- Lowe's second quarter ends on July 29, 2005 with operating results to be publicly released on Monday, August 15, 2005
Fiscal Year 2005 - a 53-week Year(comparisons to fiscal year 2004 - a 52-week year)
- The company expects to open 150 stores in 2005 reflecting total square footage growth of 13 to 14 percent
- Total sales are expected to increase approximately 17 percent for the year
- The company expects to report a comparable store sales increase of approximately 5 percent
- Operating margin (defined as gross margin less SG&A and depreciation) is expected to increase approximately 20 basis points
- Store opening costs are expected to be approximately $132 million
- Diluted earnings per share of $3.25 to $3.34 are expected for the fiscal year ending February 3, 2006
