Home improvement retailer Lowe’s Cos. on Wednesday reported a 27 percent increase in quarterly profit, topping estimates, aided by strong sales.
The second-largest home improvement retailer behind Home Depot Inc. also gave a forecast that trailed Wall Street estimates for the current quarter.
Profit rose to $508 million, or 64 cents a diluted share, in the fourth quarter ended on Jan. 28 from $401 million, or 49 cents a share, a year earlier. Lowe’s said it restated results for prior periods, including the year-earlier fourth quarter, to reflect accounting changes.
Analysts on average were expecting earnings of 59 cents a share, according to Reuters Estimates.
Sales at stores open at least a year, an important retail measure known as same-store sales, were up 6.9 percent. Total quarterly sales rose 18 percent to $8.55 billion as Lowe’s opened 56 new stores, many of them in large U.S. markets.
Lowe’s forecast per-share profit of 75 cents to 77 cents for the first quarter and $3.25 to $3.34 for the full year. Analysts currently expect profit of 79 cents for the quarter and $3.34 for the year, according to Reuters Estimates.
On Tuesday, Home Depot reported a 9.5 percent rise in quarterly profit that matched analysts’ estimates.
