Lowe's Earnings Off 19%, To Slow 2010 Expansion

Mooresville, NC, Aug. 17, 2009--Lowe's reported net earnings of $759 million for the quarter ended July 31, a 19.1 percent decline from the same period a year ago.

Earnings per share declined 19.0 percent to $0.51 from $0.63 in the second quarter of 2008. For the six months ended July 31, net earnings declined 20.1 percent to $1.23 billion while diluted earnings per share declined 19.2 percent to $0.84.

As a result, Lowe's said it is slowing new store openings to a maximum of 45 in 2010.

Sales for the quarter declined 4.6 percent to $13.8 billion, down from $14.5 billion in the second quarter of 2008. For the six months, sales declined 3.2 percent to $25.7 billion. Comparable store sales for the second quarter declined 9.5 percent and declined 8.2 percent in the first half of 2009.

"Wavering consumer confidence, unseasonable weather in core markets, and restrained customer spending compared to last year's fiscal stimulus-aided results led to lower than expected sales in the second quarter," said Robert A. Niblock, Lowe's chairman and CEO.

"There are some indications that a bottoming process in housing and the broader economy is under way, and we have seen customer traffic levels stabilize as we benefit from the resurgence of a do-it-yourself home improvement mindset," Niblock added.

During the quarter, Lowe's opened 18 new stores. As of July 31, Lowe's operated 1,688 stores in the United States and Canada representing 190.8 million square feet of retail selling space, a 6.8 percent increase over last year.

The company expects to open approximately 11 new stores in the third quarter.

Lowe's expects that total sales will decline 2 to 5 percent this quarter and comparable store sales to decline 6 to 10 percent.