Lowe's 1Q profit falls partly on bad weather

Lowe's 1Q profit falls partly on bad weather

Credit: AP

Lowe's 1Q profit falls partly on bad weather

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by Associated Press

Associated Press

Posted on May 16, 2011 at 9:15 AM

Updated Monday, May 16 at 11:07 AM

MOORESVILLE, N.C. (AP) -- Lowe's Cos. said Monday its first-quarter profit fell 6 percent, pressured in part by bad weather and difficult economic conditions, and cut its full-year outlook.

The quarterly results from the nation's No. 2 home improvement retailer missed Wall Street expectations, and its stock declined 78 cents, or 3 percent, to $24.98 in pre-market trading.

Lowe's reported net income of $461 million, or 34 cents per share, for the three months ended April 29, down from $489 million, or 34 cents per share, a year earlier.

Revenue dipped 2 percent to $12.19 billion, with revenue at stores open at least a year down 3.3 percent. The latter metric is a key indicator of a retailer's health because it excludes results from stores opened or closed during the year.

Analysts polled by FactSet expected earnings of 36 cents per share on revenue of $12.54 billion.

Lowe's had cautioned in February that consumers were still holding back. The Mooresville, N.C.'s first-quarter earnings were at the low end of its projected guidance of 34 cents to 38 cents per share for the quarter.

Chairman and CEO Robert Niblock said in a statement that the company's quarter performance was also dealing with difficult comparison to a year ago, when consumers gravitated toward federal cash-for-appliances rebates.

For the full year, Lowe's now expects earnings of $1.56 to $1.64 per share and an approximately 4 percent revenue increase, implying revenue of about $50.79 billion.

The chain previously forecast earnings of $1.60 to $1.72 per share on a 5 percent revenue rise.

Analysts predict full-year earnings of $1.70 per share on revenue of $50.9 billion.

Lowe's anticipates second-quarter earnings of 65 cents to 69 cents per share, with revenue up approximately 4 percent, implying revenue of about $14.93 billion.

Wall Street expects earnings of 68 cents per share on revenue of $14.82 billion.

Lowe's ran 1,751 stores in the U.S., Canada and Mexico as of April 29.

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