Lowe's Cos. (Wilkesboro, N.C.) reported a 22 percent increase in its fiscal first-quarter profit, thanks to a strong housing market. However, the home-improvement retailer's same-store sales were essentially flat during the period.
Lowe's said net income for the period ended May 2, 2003 totaled $421 million, up from $346 million a year earlier, while sales at its store open more than a year inched up just 0.1 percent. Lowe's total sales for the quarter rose to $7.21 billion, up 11 percent from a year earlier.
“A strong housing market and improving consumer confidence continue to support the American conviction to invest in the home despite the effect of adverse weather and uncertain world events,” says Robert Tillman, Lowe's chairman and ceo.
Looking ahead, Lowe's said it now expects same-store sales growth of 3 to 4 percent for the year, down from a previous estimate of 4 to 5 percent.
The retailer opened 21 new stores in the first quarter, giving it a total of 875 stores in 45 states. Lowe's expects to open 25 stores in its second quarter.