Lowe's Q4 Sales Gain 20.1%

By Jeff Malester On Mar 8 2004 - 8:00am

Despite a number of "weather-driven challenges," home improvement retailer Lowe's reported a 20.1 percent jump in sales for its fiscal fourth quarter, hitting $7.3 billion, up from $6 billion in the year-ago period. Comp-store sales climbed 7.3 percent.

Lowe's recorded net earnings of $407 million in its fourth quarter, ended Jan. 30, a 27.6 percent increase over the $319 million that came in the same three months a year ago. Gross margin rose a fraction of 1 percent, to 32 percent.

Calling its fiscal year "outstanding," on top of a "phenomenal performance in 2002," Lowe's president Robert Niblock said, "We continue to see strong results from our metro-market expansion."

For the 12 months, Lowe's increased sales 18.1 percent, reaching $30.8 billion, compared with the $26.1 billion reported a year earlier. Comps rose 6.7 percent.

Fiscal year net earnings grew 27.6 percent, to $1.9 billion, up from $1.5 billion in the same period the previous year. Gross margin rose less than a percentage point, to a bit over 31 percent.

In the first quarter of this fiscal year, Lowe's expects to in-crease sales 18 percent to 19 percent year-on-year, accompanied by positive comps of 6 percent to 7 percent.

In the current fiscal 12 months, Lowe's will open 140 stores, with total sales climbing 17 percent and comps 5 percent to 6 percent year-over-year.