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The company's same-store sales rose 4.3 percent in the second
quarter, stronger than the 3.9 percent expected by analysts
polled by research firm Consensus Metrix.
Lowe's sells items such as refrigerators, dishwashers and
washing machines in its kitchens and appliances category, its
biggest by sales, accounting for 14 percent of total sales.
The company's outdoor power equipment category, which includes
chainsaws, lawn mowers and branch trimmers, contributes about 4
percent to total sales.
Larger rival Home Depot Inc <HD.N> also reported a
stronger-than-expected rise in quarterly same-store sales on
Tuesday, helped by increased home remodeling activity in the
United States and a recovery in the housing market.
U.S. housing starts rose to a near eight-year high in July as
builders ramped up construction of single-family homes, while
U.S. homebuilder sentiment rose in August to its highest level
in almost a decade.
Lowe's net income rose to $1.13 billion, or $1.20 per share, in
the quarter ended July 31 from $1.04 billion, or $1.04 per
share, a year earlier.
Net sales rose 4.5 percent to $17.35 billion.
Analysts on average had expected earnings of $1.24 per share and
revenue of $17.27 billion, according to Thomson Reuters I/B/E/S.
Unlike Home Depot, which raised its full-year profit and sales
forecasts, Lowe's maintained its forecast of a profit of about
$3.29 per share, sales growth of 4.5-5.0 percent and same-store
sales growth of 4.0-4.5 percent for the year ending January.
The company's shares were down nearly 2 percent at $71.75 in
premarket trading on Wednesday. Up to Tuesday's close, the stock
had risen about 45 percent in the past 12 months.
(Editing by Kirti Pandey)
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