Lowe's 2Q Sales Beat on Demand For Appliances, Outdoor Equipment

Reuters

Lowe's, the No.2 U.S. home improvement chain, reported better-than-expected quarterly same-store sales, helped by higher demand for items such as appliances and outdoor power equipment.

Continue Reading Below

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 a range of outdoor power equipment including chainsaws, lawn mowers and branch trimmers, and appliances such as refrigerators, dishwashers and washing machines.

Larger rival Home Depot 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.

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 an average had expected earnings of $1.24 per share and revenue of $17.27 billion, according to Thomson Reuters I/B/E/S.

Lowe's shares were down slightly at $72.71 in premarket trading on Wednesday.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Kirti Pandey)