By Michael Calia
Lowe's Cos. said its sales rose in the fourth quarter as the
retailer said the home-improvement industry should experience
continued, if modest, growth this year.
The company's shares rose 2.5% in recent premarket trading as
its results surpassed analysts' expectations.
Lowe's also offered its outlook for its new year. The company
said it expects per-share earnings of $3.29 for the 2015 fiscal
year ended Jan. 29, 2016, and total sales to rise 4.5% to 5%.
Analysts polled by Thomson Reuters had projected $3.28 a share in
earnings and 5% revenue growth.
Lowe's report comes a day after larger competitor Home Depot
Inc. posted results that easily topped expectations, including a
7.9% jump in same-store sales, as U.S. stores drove growth. On
Wednesday, Lowe's reported a 7.3% increase in sales at stores open
at least a year during the most recent quarter. Sales at U.S.
Lowe's stores rose 7.4%.
Chief Executive Robert A. Niblock said in a release Wednesday
that "macroeconomic fundamentals are aligned for modestly stronger
home-improvement industry growth in 2015."
Overall, Lowe's posted a profit of $450 million, or 46 cents a
share, in the most recent quarter, up from $306 million, or 18
cents a share, a year earlier.
Net sales rose 7.6% to $12.54 billion
Analysts had expected earnings of 43 cents a share and revenue
of $12.31 billion in revenue for the period.
Write to Michael Calia at michael.calia@wsj.com
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