Lowe's Highs

Lowe's Companies Inc. (Wilkesboro, N.C.) reported a 27.8 percent increase in net earnings for its second fiscal quarter ended Aug. 1, 2003.

Sales for the quarter increased 17.2 percent and same-store sales were up 6.9 percent.

“As we had expected, Americans' passion for home improvement projects surged as the weather improved across most of the U.S.,” said chairman and ceo Robert Tillman. “As a result of the continuing commitment to improve the home, we experienced sales strength in every product category, including big ticket items, and in every region of the country. The continuing success of our internal sales and performance initiatives, as well as signs of an improving macro economic climate, keep us optimistic for the back half of the year.”

“A strategic investment in inventory and an effective marketing program allowed Lowe's to capitalize on a compressed spring selling season,” added president Robert Niblock. “When customers returned to our stores following the cold and wet months that started the year, our employees delivered great service and the merchandise our customers wanted. With over 57 years of experience in the home improvement industry, our second quarter results show that our stores were prepared for what we were confident would be an intense ramp in sales as weather improved.”

During the quarter, Lowe's opened 24 new stores, including two relocations, and closed one older, smaller store. As of August 1, the nation's second largest home-improvement retailer operated 896 stores in 45 states representing 99.7 million square feet of retail selling space, a 12.5 percent increase over last year. The company said it expects to open 38 stores in the third quarter, reflecting square footage growth of approximately 14 percent It expects a third quarter sales increase of approximately 16 to 17 percent and a same-store sales increase of 5 to 6 percent, for the period ending Oct. 31, 2003.