Mooresville, NC, November 15--Lowe's today reported net earnings of $522 million for the quarter ended October 29, 2004, a 15.5 percent increase over the same period a year ago.
Diluted earnings per share increased 17.9 percent to $0.66 from $0.56 in the third quarter of 2003.
For the nine months ended October 29, 2004, net earnings grew 14.4 percent to $1.68 billion while diluted earnings per share increased 14.7 percent to $2.11.
Sales for the quarter increased 16.2 percent to $9.1 billion, up from $7.8 billion in the third quarter of 2003. Comparable store sales for the third quarter increased 5.2 percent. For the nine months ended October 29, 2004, sales increased 18.3 percent to $27.9 billion. Comparable store sales increased 6.6 percent for the first nine months of 2004.
"The results our employees delivered in the third quarter are a clear indication that our stores are meeting customer needs with great products and industry leading customer service every day," explained Robert L. Tillman, Lowe's chairman and CEO. "Continued signs of a robust housing market, improving employment and strong demographic trends provide a foundation for our optimism for the future."
"Third quarter sales performance continued our trend of consistently strong results. A 5.2 percent increase in comparable store sales on top of the 12.2 percent increase in last year's third quarter represents the best two-year performance for Lowe's in nearly a decade," said Lowe's president Robert A. Niblock.
During the quarter, Lowe's opened 35 new stores including one relocation. As of October 29, 2004, Lowe's operated 1,031 stores in 45 states representing 117.5 million square feet of retail selling space, a 13.4 percent increase over last year.
The company offered the following guidance for third quarter and fiscal 2004:
Fourth Quarter 2004 (comparisons to fourth quarter 2003)
- The company expects to open 56 stores reflecting square footage growth of approximately 14 percent
- Total sales are expected to increase 16 to 17 percent
- 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 decline approximately 10 basis points
- Store opening costs are expected to be approximately $52 million
- Diluted earnings per share of $0.58 to $0.60 are expected
- Lowe's fourth quarter ends on January 28, 2005 with operating results to be publicly released on Wednesday, February 23, 2005
Fiscal Year 2004 (comparisons to fiscal year 2003)
- The company expects to open 140 stores in 2004 reflecting total square footage growth of approximately 14 percent
- Total sales are expected to increase approximately 18 percent for the year
- The company expects to report a comparable store sales increase of 6 to 7 percent
- Including the estimated 60 basis point negative impact of EITF 02-16, operating margin (defined as gross margin less SG&A and depreciation) is expected to decline 25 to 35 basis points
- Store opening costs are expected to be approximately $123 million
- Including the estimated $0.16 impact of EITF 02-16, diluted earnings per share of $2.69 to $2.71 are expected for the fiscal year ending January 28, 2005. Excluding the impact of the accounting change, diluted earnings per share of $2.85 to $2.87 would be expected.
