By Michael Calia
Lowe's Cos. on Wednesday raised its outlook after its sales and
profit grew in the most recent period as the company maintained its
cautious optimism about the home-improvement sector.
Shares of the company rose more than 4% in recent premarket
trading as the results exceeded analysts' expectations.
The company expanded its expectations for full-year sales growth
to 4.5% to 5%, up from a projection of 4.5%. It also sees
same-store sales expanding 3.5% to 4%, compared with its previous
guidance of 3.5%. Lowe's had previously lowered its guidance in
August.
The company also increased its earnings forecast for the year
ending Jan. 30 by five cents a share to $2.68.
Lowe's posted its results for the most recent period a day after
bigger rival Home Depot Inc. reported sales that exceeded
expectations and reiterated its confidence in a slow-but-steady
U.S. housing recovery.
Lowe's, meanwhile, said same-store sales rose 5.1% in the
period, compared with Home Depot's 5.2% increase.
"We are pleased with our performance, and continue to be
cautiously optimistic about the home improvement landscape," Chief
Executive Robert A. Niblock said in a news release.
For the quarter ended Oct. 31, Lowe's posted earnings of $585
million, or 59 cents a share, up from $499 million, or 47 cents a
share, a year earlier.
Net sales rose 5.6% to $13.68 billion.
Analysts had projected 58 cents a share in earnings and $13.55
billion in revenue.
Write to Michael Calia at michael.calia@wsj.com
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