Lowe’s Warnings

The Lowe’s Cos. Inc. (Mooresville, N.C.) reported an 11 percent increase in profits for its second quarter ended Aug. 4, 2006. But the nation’s second-largest home-improvement retail chain warned that a slowing housing market would hurt its earnings for the rest of the year.

Sales in the quarter rose more than 12 percent and same-store sales gained 3.3 percent. During the quarter, Lowe’s said it gained market share for flooring, appliances, outdoor power equipment and cabinets. But orders for new homes have slowed in recent periods and sales of existing houses are slowing from record levels, putting pressure on sales at Lowe’s (and its rival, Atlanta-based Home Depot).

Increased gas prices have also affected business, said Lowe’s ceo Robert Niblock. “Near-term pressures on the U.S. consumer have led to a more cautious outlook for the balance of the year.”