LOWE'S Cos reported a 17.9-percent drop in first-quarter earnings yesterday as the slumping US housing market and softer economy hurt sales. Its shares fell almost 3 percent in pre-market trading.
The second-biggest US home improvement retailer said it earned US$607 million, or 41 cents per share, in the three months ended May 2. That is down from US$739 million, or 48 per share, in the first quarter of 2007.
Revenue slipped to US$12.0 billion from US$12.2 billion a year ago.
Analysts surveyed by Thomson Financial had been looking for net income of 40 cents a share on revenue of US$12.4 billion. Estimates usually exclude one-time items.
Comparable-store sales ?? a closely watched gauge of retail health that measures sales at stores open at least a year ?? declined 8.4 percent. The company predicted that would drop at least 6 percent in the current quarter and the year.
"The challenging sales environment we have been experiencing for the past six quarters continued into the first quarter of 2008," said Chairman and Chief Executive Robert A. Niblock. "The generally poor economic outlook, including well-known housing pressures, rising food and fuel prices and a more negative employment picture eroded consumer confidence and impacted discretionary purchases for the home."