Lowe's comp sales, profit beat as hurricanes drive
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[November 21, 2017]
By Sruthi Ramakrishnan
(Reuters) - Lowe's Cos Inc's third-quarter
comparable sales topped analysts' estimates on Tuesday, helped by
hurricane-driven demand for its building materials and a push on the
volume of business it does with professional contractors.
Compared with the bumper results last week for larger rival Home Depot
Inc <HD.N>, the roughly $1 billion or 6.6 percent rise in Lowe's sales
was not enough to send its shares higher before the bell.
Sales at Lowe's stores open at least a year increased 5.7 percent in the
quarter ended Nov. 3, above the average analyst estimate of 4.6 percent
growth, according to Thomson Reuters I/B/E/S.
The No. 2 U.S. home improvement chain earned $1.05 per share in the
quarter. Analysts had expected earnings of $1.02 per share.
Hurricane-related sales in the quarter were about $200 million. Lowe's
Chief Executive Robert Niblock said comp sales were also helped by the
retailer's move to focus on professional contractors, a clientele with
Lowe's has traditionally focused on do-it-yourself customers but is
trying to take advantage of the prolonged housing recovery by offering
more products and promotions geared toward those contractors.
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Gift cards are shown for sale inside a Lowe's retail store in
Carlsbad, California, U.S., May 24, 2017. REUTERS/Mike Blake
The retailer also said Chief Operating Officer Rick Damron would retire and
would be replaced by the president of Lowe's international business, Richard
Maltsbarger, effective Feb. 3.
Selling and general expenses fell about 7 percent to $3.81 billion.
Net sales rose 6.6 percent to $16.77 billion, beating analysts' average estimate
of $16.59 billion.
Net income more than doubled to $872 million. The year-ago quarter included $462
million in non-cash pre-tax charges.
Lowe's shares, which have risen about 15 percent this year, were trading down
about 1.5 percent at $80.28 in premarket trading.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Martina D'Couto)
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