Mooresville, N.C. — Tighter expense controls contributed to a 10.4 percent increase in second-quarter profits for Lowe’s, to $1 billion.
Net sales for the three months, ended Aug. 1, rose 5.7 percent to $16.6 billion, and comp sales increased 4.4 percent.
On a conference call, chairman, president and CEO Robert Niblock acknowledged “some weakness” in appliance comps due to the competitive marketplace and “incredibly strong” prior-year comparisons, when same-store majap sales were up by the high teens. He said performance was further impacted by soft room air sales in July due to the cool summer.
“It was a competitive environment out there for major appliances, and tough numbers we were going up against,” he told analysts.
Nevertheless, average two-year majap comps are still up double-digits, added chief customer officer Mike Jones, “So [appliances are] actually performing very well.”
Looking ahead, Niblock noted that “We believe home-improvement spending will continue to progress in tandem with strengthening job and income growth.”