Lowe’s (LOW) beat Wall St. forecasts and is trading up over 5% in the pre-market. LOW reported net earnings of $1.02 billion for the quarter ended August 3, 2007, a 9.0 percent increase over the same period a year ago. Diluted earnings per share increased 11.7 percent to $0.67 from $0.60 in the second quarter of 2006.
LOW revenue for the quarter increased 5.8 percent to $14.2 billion, up from $13.4 billion in the second quarter of 2006.
LOW Business Outlook
Third Quarter 2007 (comparisons to third quarter 2006)
— The company expects to open 40 new stores reflecting square footage
growth of approximately 10 percent
— Total sales are expected to increase 7 to 8 percent
— The company expects approximately flat comparable store sales
— Operating margin (defined as gross margin less SG&A and depreciation)
is expected to decline approximately 140 basis points driven by bonus,
retirement and insurance expenses that had significant leverage in last
year’s third quarter
— Store opening costs are expected to be approximately $47 million
— Diluted earnings per share of $0.43 to $0.45 are expected
— Lowe’s third quarter ends on November 2, 2007 with operating results to
be publicly released on Monday, November 19, 2007
Fiscal Year 2007 (comparisons to fiscal year 2006)
— The company expects to open 150 to 160 stores in 2007 reflecting total
square footage growth of approximately 11 percent
— Total sales are expected to increase approximately 6 percent
— The company expects comparable store sales to decline approximately 2
percent
— Operating margin (defined as gross margin less SG&A and depreciation)
is expected to decline 70 to 80 basis points
— Store opening costs are expected to be $135 to $140 million
— Diluted earnings per share of $1.97 to $2.01 are expected for the
fiscal year ending February 1, 2008
Douglas A. McIntyre
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