Wilkesboro, NC, Nov. 18--Lowe's Cos. had a 35% increase in third quarter profit, fueled by a strong housing market and its expansion to major U.S. metropolitan markets. Lowe's is expecting earnings for the fourth quarter and fiscal 2002 to top analysts' current estimates as consumers invest in their homes.
The company said home refinancings, which have been spurred by low interest rates, have introduced billions of dollars into the economy.
"Demographic and societal trends continue to provide longer term opportunity for our company as Americans increase their focus on the comforts of home," said chairman Robert Tillman.
The retailer is also reaping the benefits of its expansion into large U.S. Metro Markets. It opened 18 stores during the third quarter, bringing its total to 823. For the 2002 fiscal year, Lowe's expects to open 123 stores, including 37 in the fourth quarter.
Third quarter profit came to $339 million, or 43 cents a share, compared with $250 million, or 32 cents, a year earlier. The consensus estimate of analysts polled by research firm Thomson First Call was 40 cents a share.
Lowe's said it expects to report earnings of 33 cents a share for its fourth quarter, slightly ahead of the current analysts' consensus estimate of 32 cents, according to First Call.
It sees fiscal 2002 earnings of $1.78, compared with analyst estimates of $1.75.
Sales rose nearly 18% to $6.4 billion in the third quarter. Comparable store sales rose 4.1%.
Lowe's expects sales to rise 16% to 17% in the fourth quarter, with sales at stores open at least a year increasing 2% to 4%. For the fiscal year, total sales are seen increasing 20%, accompanied by a 5% rise in comparable store sales.
