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Lowe’s Posts Higher Profits, Lower Sales

8/20/2012 11:18:46 AM Eastern

Mooresville, N.C. – Lowe’s net earnings increased 10 percent during its fiscal second quarter year on year, while sales decreased 2 percent.

In the quarter, ended Aug. 3, net earnings were $747 million, 10 percent higher than the previous year, while sales for the quarter decreased 2 percent to $14.2 billion.

Included in the above reported results is a charge related to a previously announced reduction in staff at U.S. headquarters. This charge reduced pretax earnings for the second quarter by $15 million.

Comp-store sales for the second quarter decreased 0.4 percent, while comp-store sales for the U.S. business decreased 0.2 percent.

“Our results fell short of our overall expectations,” commented Robert A. Niblock, Lowe’s chairman, president and CEO. “However, I have confidence in our strategy and in our employees, and while we recognize the significant magnitude of change that we’ve asked the organization to absorb as we transform our business, we fully understand that we must improve our level of execution.”

As of Aug. 3, Lowe’s operated 1,748 stores in the United States, Canada and Mexico, representing 196.8 million square feet of retail selling space.