A customer leaves a Lowe's home improvement store in Matthews, N.C., on Nov. 18, 2014.Chuck Burton/The Associated Press
Lowe's Cos. Inc., the second-largest U.S. home-improvement retailer, posted fourth-quarter profit that topped analysts' estimates as the company revamps its stores to take advantage of a boom in home remodeling.
Net income in the three months through Jan. 30 rose 47 per cent to $450-million (U.S.), or 46 cents a share, from $306-million, or 29 cents, a year earlier, the Mooresville, N.C.-based company said Wednesday in a statement. The average of 25 analysts' estimates compiled by Bloomberg was 44 cents.
Lowe's has been increasing space for seasonal goods and national brands while also adding design services as rising housing values encourage homeowners to renovate their properties. The results show Lowe's is mostly keeping pace with Home Depot Inc., which also reported profit that topped analysts' estimates yesterday.
Lowe's rose 0.8 per cent to $75.25 at 6:04 a.m. in early trading in New York. The shares had gained 8.5 per cent this year through yesterday.
Same-store sales, a key yardstick of success in retail, rose 7.3 per cent in the quarter. Analysts projected a gain of 5.1 per cent, according to Consensus Metrix. Total revenue increased 7.5 per cent to $12.5-billion, topping analysts' $12.3-billion estimate.
Profit in the current fiscal year will be $3.29 a share, the company said. Analysts projected earnings for the year would be $3.28 a share.