Lowe’s reported an overall rise in sales and earnings for its second quarter based on a favorable home improvement market, although the retailer’s performance did not meet Wall Street’s analyst expectations.
In the second quarter ended July 29, The Lowes Cos. recorded net earnings of $1.17 billion, or $1.31 per diluted share, versus $1.13 billion, or $1.20 per diluted share, in the year-earlier period.
Lowe’s reported a loss on a foreign currency hedge entered into in advance of the company’s acquisition of Canadian retailer Rona that decreased pre-tax earnings for the second quarter by $84 million and diluted earnings per share by six cents. Despite posting a gain, diluted earnings per share fell short of an analyst average estimate of $1.41 published by MarketBeat.
Comparable sales for the quarter increased 2% versus the period a year before. Net sales were $18.26 billion versus $17.35 billion in the 2015 quarter.
According to the company, average ticket in the quarter gained 1.6% while customer transactions advanced 3.7%. On a comparable basis, average ticket increased 1.7% while customer transactions increased 0.3%.
“We delivered solid results for the first half of the year, in line with our expectations,” said Robert Niblock, Lowe’s chairman, president and CEO. “We believe we are well positioned to capitalize on a favorable macroeconomic backdrop for home improvement in the second half of this year as we continue to execute on our strategic priorities to provide better omnichannel experiences, deepen our relationships with professional customers and drive productivity and profitability.”
Lowe’s operates 2,108 home improvement and hardware stores in the United States, Canada and Mexico.
