Lowe’s Companies – LOW – Keenly focused on improving its core business
Lowe’s Companies, Inc. (NYSE: LOW), the world’s second largest home improvement retailer, reported net earnings of $396 million for the quarter ended November 2, 2012, a 76.0 percent increase over the same period a year ago. Diluted earnings per share increased 94.4 percent to $0.35. For the nine months ended November 2, 2012, net earnings increased 10.1 percent from the same period a year ago to $1.67 billion, while diluted earnings per share increased 21.4 percent to $1.42.
Included in the reported results are charges related to long-lived asset impairments, discontinued projects, and a change in the discount rate applied to self-insurance claims which, in the aggregate, reduced pre-tax earnings for the third quarter by $85 million and diluted earnings per share by $0.05. For the same period a year ago, reported results included charges related to store closings, long-lived asset impairments, and discontinued projects which, in the aggregate, reduced pre-tax earnings by $368 million and diluted earnings per share by $0.18.
Lowe’s fiscal year ends on the Friday nearest the end of January; therefore, fiscal year 2011 included 53 weeks. The quarterly comparisons in 2012, which is a 52-week year, are impacted by a shift in comparable weeks. Sales for the third quarter increased 1.9 percent to $12.1 billion from $11.9 billion in the third quarter of 2011. The week shift negatively impacted total sales by $62 million or 0.5 percent for the third quarter. For the nine month period, sales were $39.5 billion, a 2.3 percent increase over the same period a year ago. The week shift accounted for $192 million or 0.5 percent of the total sales increase for the nine month period.
The week shift had an insignificant impact on diluted earnings per share in the third quarter. For the nine month period, the week shift contributed approximately $0.02 to diluted earnings per share.
Comparable store sales for the third quarter increased 1.8 percent on a consolidated basis as well as for the U.S. business. For the nine month period, comparable store sales increased 1.3 percent, while comparable store sales for the U.S. business increased 1.4 percent. Comparable store sales are based on comparable 13-week periods.
“We are keenly focused on improving our core business,” commented Robert A. Niblock, Lowe’s chairman, president and CEO. “Our level of execution is improving and we delivered solid results in the third quarter. I would like to thank our employees for their continued dedication and customer focus.”
About Lowe’s Companies, Inc. – LOW
With fiscal year 2011 sales of $50.2 billion, Lowe’s Companies, Inc. (LOW) is a FORTUNE® 100 company that serves approximately 15 million customers a week at more than 1,745 home improvement stores in the United States, Canada and Mexico. Founded in 1946 and based in Mooresville, N.C., Lowe’s is the second-largest home improvement retailer in the world.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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