Mooresville, NC, August 15--Lowe's reported net earnings of $838 million in the second quarter, a 19.7 percent increase over the same period a year ago. Diluted earnings per share increased 20.7 percent to $1.05 from $0.87 in the second quarter of 2004.
Sales for the quarter increased 17.3 percent to $11.9 billion, up from $10.2 billion in the second quarter of 2004. Comparable store sales for the second quarter increased 6.5 percent.
Analysts had forecast earnings for the quarter of $1.02 on revenue of $11.81 billion.
For the first six months of 2005, net earnings grew 24.0 percent to $1.43 billion while diluted earnings per share increased 24.5 percent to $1.78.
Sales for the first six months increased 15.9 percent to $21.8 billion. Comparable store sales increased 5.2 percent in the first half of 2005.
"Building on the strong sales trends we experienced in April, our stores delivered solid comparable store sales across all three months of the quarter," explained Robert A. Niblock, Lowe's chairman, president and CEO.
"Comp sales above our original guidance were driven by our Big 3 sales initiatives of Installed Sales, Special Order Sales and sales to Commercial Business Customers, all of which remain core to our performance. Successful traffic-driving marketing campaigns, in conjunction with great merchandising and store execution, led to comparable store increases in both average ticket and transaction counts in the quarter.
"Favorable social and demographic trends, a robust housing market and an unwavering organizational commitment to provide unmatched service and solutions for our customers continue to give us confidence in the future for Lowe's," Niblock added. "We remain committed to invest in all areas of our business with well-trained employees, industry-leading stores and state-of- the-art systems to ensure we execute our vision to be the first choice for home improvement in each and every market we serve."
During the quarter, Lowe's opened 27 new stores including one relocation. As of July 29, 2005, Lowe's operated 1,138 stores in 49 states representing 129.4 million square feet of retail selling space, a 13.7 percent increase over last year.
Lowe's said it expects to open 34 stores buring the third quarter, reflecting square footage growth of approximately 13 percent. It said it expects total sales during the quarter to increase approximately 16 percent, with a comparable store sales increase of 4 to 6 percent.
The company said it expects diluted earnings per share in the quarter of $0.76 to $0.78.
For the fiscal year 2005, the company said it expects to open 150 stores, reflecting total square footage growth of approximately 13 percent. It said it expects total sales for the year to increase approximately 17 percent and comparable store sales to increase approximately 5 percent.
For the year the company said it expects diluted earnings per share of $3.31 to $3.37.
