by Company also reports $2.4 billion in net earnings, up slightly from $2.38 billion the same period last year
MOORESVILLE, N.C. – Home improvement retailer Lowe’s Cos. Inc. reported a 1.1% increase in sales for the second quarter ended Aug. 1 and a slight decrease in sales for the second half.
Sales for the quarter totaled $24 billion, compared with $23.6 billion the same period last year. Net earnings totaled $2.4 billion, or $4.27 per share, compared with $2.38 billion, or $4.18 per share, the same period last year.
“This quarter, the company delivered positive comp sales driven by solid performance in both Pro and DIY,” said Marvin R. Ellison, Lowe’s chairman, president and chief executive officer. “Despite challenging weather early in the quarter, our teams drove both sales growth and improved profitability. I’d also like to thank our front-line associates for their outstanding service which led to another increase in customer satisfaction scores.”
He attributed the change in net earnings to some $43 million in pre-tax expenses associated with the acquisition of Artisan Design Group. The company said it invested $1.3 billion for the acquisition of ADG.
“In June, we closed on the acquisition of ADG, which strengthens our ability to capture a greater portion of Pro planned spend and expands our reach into the new-home construction market,” he said.
For the quarter, it reported gross earnings of $8.1 billion, or 33.8% of sales, compared with $7.9 billion, or 33.5% of sales, the same period last year. Operating income was $3.5 billion, or 14.5% of sales, compared with $3.44 billion, or 14.6% of sales, the same period last year.
For the full first half, it reported $44.9 billion in sales, compared with $44.95 billion in sales the same period last year. Net earnings totaled $4.04 billion, or $7.19 per share, compared with $4.1 billion, or $7.23 per share.
Gross margin for the first half totaled $15.1 billion, or 33.6% of sales, compared with $15 billion, or 33.3% of sales last year. Operating income totaled $6 billion, or 13.3% of sales, compared with $6.1 billion, or 13.6% of sales, the same period last year.
Residential furniture, including indoor and outdoor products, is an increasingly important segment for Lowe’s. It sells products from its website and either delivers them to consumers’ homes or lets them pick up at a local store.
It ranked at No. 26 on Home News Now’s 125 Furniture & Bedding Retailers 2024 ranking, with $675 million in furniture and bedding sales and 1,748 stores in all 50 states and the District of Columbia.
