Lowe’s announced its second quarter earnings and sales, beating out analysts’ expectations.
The home improvement retailer reported net income of $1.52 billion ($1.86 a share) for the quarter ending August 3, compared with $1.42 billion ($1.68 per share) the previous year. With the exclusion of one-time items, Lowe’s earned $2.07 a share — 5 cents higher than analysts’ expectations.
In addition, revenue increased 7.1 percent to $20.89 billion, beating out analysts’ predictions of $20.78 billion. Same-store sales also increased 5.2 percent, which is the highest U.S. comp-store sales gain since the first quarter of 2016. However, analysts were looking for a 5.3 percent increase.
“We posted solid results this quarter by capitalizing on delayed spring demand,” said President and CEO Marvin R. Ellison. “We are committed to driving even stronger performance in the future by sharpening our focus on retail fundamentals and by limiting any projects and initiatives that take us away from our core mission of being a great omnichannel home improvement retailer.”
The reported earnings included non-cash pre-tax charges of $230 million, the result of the company’s decision to close all 99 locations of Orchard Supply Hardware, which Lowe’s purchased out of bankruptcy in 2013.
For the full year, Lowe’s revealed it expects to earn between $4.50 and $4.60 a share, with same-store sales growing as much as 3 percent. It had previously announced earnings per share between $5.40 and $5.50, with same-store sales going up to 3.5 percent.
Lowe’s has also announced that David M. Denton will be its new executive vice president and chief financial officer, a title he currently holds at CVS Health. He will start his new position after the closing of the CVS acquisition of Aetna sometime in the second half of 2018.
“I am honored to join Lowe’s and look forward to working with Marvin and the talented Lowe’s team to further enhance the company’s financial and operational performance, while strengthening our competitiveness in this evolving retail environment,” Denton said in a press release.