Lowe's 2Q earnings top expectations

By MarketsFOXBusiness


In this Wednesday, June 29, 2016, photo, customers walk toward a Lowe's store in Hialeah, Fla.

Lowe’s reported a 2Q adjusted profit of $2.07 per share, topping the estimate for $2.02. Revenue of $20.9 billion, also beat the estimate for $20.77 billion.

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Same-store sales rose 5.2%, missing estimates.

Shares fell 2% in premarket trading.

The company plans to close all 99 of its Orchard Supply Hardware stores which are located in California, Florida and Oregon.

Lowe's expects sales to grow at about 4.5% for fiscal 2018 and sales at stores open at least a year at about 3%.

The company had previously forecast full-year total sales to increase at about 5% and sames-store sales at about 3.5%.

"We posted solid results this quarter by capitalizing on delayed spring demand," commented Marvin R. Ellison, Lowe's president and CEO. "We are committed to driving even stronger performance in the future by sharpening our focus on retail fundamentals and by limiting any projects and initiatives that take us away from our core mission of being a great omni-channel home improvement retailer."

The home improvement retailer reported an adjusted per share profit of $1.57 in the year ago quarter on $19.5 billion in revenue.

First quarter results fell flat as an extended winter cut into sales. Profit was $1.19 per share on revenue of $17.36 billion.