Lowe's Cos., the second-largest U.S. home improvement retailer, on Monday reported a 28 percent rise in fourth-quarter profit, topping estimates, aided by solid sales and its expansion into large U.S. markets.
For the quarter ended Jan. 30, Lowe's, based in Mooresville, North Carolina, reported earnings of $407 million, or 51 cents a share, up from $319 million, or 40 cents a share, a year earlier. Sales at stores open at least a year, an important retail measure known as same-store sales, rose 7.3 percent, compared with a 4 percent rise a year earlier.
Analysts were on average expecting profit of 49 cents a share, according to Reuters Research, a unit of Reuters Group Plc.
The retailer, which is posing a stiff challenge to industry leader Home Depot Inc. in big U.S. metropolitan markets, cited benefits from its expansion to big cities such as New York, its merchandising strategy of stocking higher as well as lower-priced products and "outstanding" customer service.
Sales from continuing operations rose 20 percent to $7.25 billion. Lowe's said sales would rise 18 percent to 19 percent in the first quarter, while same-store sales rise 6 percent to 7 percent.
The company forecast first-quarter profit of 52 cents to 54 cents a share and full-year earnings of $2.63 to $2.66 a share, including an estimated 13 cents a share impact from an accounting change. Analysts currently expect profit of 60 cents for the first quarter and $2.69 for the fiscal year.
