Lowe’s third-quarter earnings drop 29.5%

Atlanta Business Chronicle

Monday November 16, 2009 12:03 PM

Lowe’s Companies Inc.’s third-quarter earnings fell 29.5 percent, hurt by the recession’s impact on demand for home-improvement purchases.

The Mooresville, N.C.-based rival of The Home Depot Inc. had net income of $344 million and earnings of 23 cents a share, compared with net income of $488 million and earnings of 33 cents a share in the same quarter last year.

The latest results include a one-time charge of $57 million for the carrying value of three stores in operation and the company’s decision not to open some stores.

Sales fell 3 percent to $11.4 billion from $11.7 billion a year ago.

CEO Robert Niblock cited weak consumer spending for the drop in sales.

During an earnings call Monday morning, Larry Stone, president and chief operating officer, said there are indications of improvement in some hard-hit housing markets the retailer serves.

The company’s market share also grew.

“We’re starting to see encouraging signs,” Stone said.

As of Oct. 30, Lowe’s (NYSE: LOW) operated 1,699 stores in North America.

Atlanta-based Home Depot (NYSE: HD) will report its third-quarter earnings on Nov. 17.

Lowe’s Companies Inc.’s third-quarter earnings fell 29.5 percent, hurt by the recession’s impact on demand for home-improvement purchases.

The Mooresville, N.C.-based rival of The Home Depot Inc. had net income of $344 million and earnings of 23 cents a share, compared with net income of $488 million and earnings of 33 cents a share in the same quarter last year.

The latest results include a one-time charge of $57 million for the carrying value of three stores in operation and the company’s decision not to open some stores.

Sales fell 3 percent to $11.4 billion from $11.7 billion a year ago.

CEO Robert Niblock cited weak consumer spending for the drop in sales.

During an earnings call Monday morning, Larry Stone, president and chief operating officer, said there are indications of improvement in some hard-hit housing markets the retailer serves.

The company’s market share also grew.

“We’re starting to see encouraging signs,” Stone said.

As of Oct. 30, Lowe’s (NYSE: LOW) operated 1,699 stores in North America.

Atlanta-based Home Depot (NYSE: HD) will report its third-quarter earnings on Nov. 17.

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