By Michael Calia
Lowe's Cos. said its fiscal fourth-quarter profit grew 6.3% as
sales continued to improve, led by its core home-improvement
categories.
The company also authorized an additional $5 billion in share
buybacks. It will continue to use the $1.3 billion balance on its
existing authorization, Lowe's said, adding that it bought back
$958 million in shares during the fourth quarter.
But the retailer offered a soft earnings forecast for the
just-started year at $2.60 a share, versus the $2.64 projected by
analysts polled by Thomson Reuters. The company said it expects
total sales to increase 5% for the year, in line with analysts'
views. Additionally, Lowe's said it expects same-store sales for
the year to rise 4%.
Lowe's and rival Home Depot Inc. have enjoyed the fruits of a
housing recovery while retailers in general have struggled with
overall sluggishness in consumer spending. Yet, Lowe's said last
week it would hire 25,000 seasonal workers for spring, its busiest
sales season, down from the previous-year total of 45,000, while
Home Depot plans to keep its hiring level flat at 80,000.
Lowe's on Wednesday said it posted 3.9% same-store sales growth
in fourth quarter, versus the 4.4% growth reported by Home Depot on
Tuesday.
"During the quarter, we delivered solid performance in core home
improvement categories, balancing softer sales of seasonal gifts
and holiday decorations," Chairman and Chief Executive Robert A.
Niblock said. "When extreme winter weather arrived late in the
quarter, our distribution network responded quickly and efficiently
to move product where it was most needed."
For the quarter ended Jan. 31, Lowe's posted a profit of $306
million, or 29 cents a share, up from $288 million, or 26 cents a
share, a year ago. The results for the most recent quarter included
a charge of two cents a share related to asset impairments.
Net sales improved 5.6% to $11.66 billion.
Analysts polled by Thomson Reuters had predicted per-share
earnings of 31 cents on revenue of $11.67 billion.
Gross margin improved to 34.7% from 34.3%.
Shares of Lowe's were inactive. The stock is down 2.9% so far
this year.
Write to Michael Calia at michael.calia@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires