Lowe’s crosses $20 billion sales mark; taps CVS exec as finance head
Lowe’s Cos. on Wednesday reported second quarter earnings and sales that topped the Street as a delayed spring finally drove customers to stores.
The home improvement giant also said it is appointing David M. Denton as executive VP, CFO. Denton, who currently holds the same title at CVS Health, will join Lowe’s after the closing of the CVS acquisition of Aetna, expected in the second half of 2018. Denton will succeed Lowe’s CFO Marshall A. Croom, whose retirement was previously announced.
Lowe’s net income for the quarter ended Aug. 3 was $1.52 billion, or $1.86 a share, compared with $1.42 billion, or $1.68 per share, in the year-ago period. Excluding one-time items, Lowe's earned $2.07 a share, 5 cents ahead of analysts' expectations, based on a poll by Thomson Reuters. The results were weighed down by a non-cash pre-tax charges of $230 million, related to the closing of the Orchard Supply Hardware business, which Lowe’s purchased out or bankruptcy in 2013.
Revenue rose 7.1% to $20.89 billion. Analysts had expected $20.78 billion. Same-store sales increased 5.2%, the highest U.S. comp-store sales gain since the first quarter of 2016. Analysts were looking for a 5.3% increase.
“We posted solid results this quarter by capitalizing on delayed spring demand,” commented Marvin R. Ellison, who took the reins as Lowe’s president and CEO in July. “We are committed to driving even stronger performance in the future by sharpening our focus on retail fundamentals and by limiting any projects and initiatives that take us away from our core mission of being a great omnichannel home improvement retailer.
For the full year, Lowe's said it expects to earn between $4.50 and $4.60 a share, with same-store sales climbing as much as 3%. The company had previously been calling for earnings per share between $5.40 and $5.50, with same-store sales increasing as much as 3.5%. The new forecast takes into account the Orchard closures and inventory cuts.
The home improvement giant also said it is appointing David M. Denton as executive VP, CFO. Denton, who currently holds the same title at CVS Health, will join Lowe’s after the closing of the CVS acquisition of Aetna, expected in the second half of 2018. Denton will succeed Lowe’s CFO Marshall A. Croom, whose retirement was previously announced.
Lowe’s net income for the quarter ended Aug. 3 was $1.52 billion, or $1.86 a share, compared with $1.42 billion, or $1.68 per share, in the year-ago period. Excluding one-time items, Lowe's earned $2.07 a share, 5 cents ahead of analysts' expectations, based on a poll by Thomson Reuters. The results were weighed down by a non-cash pre-tax charges of $230 million, related to the closing of the Orchard Supply Hardware business, which Lowe’s purchased out or bankruptcy in 2013.
Revenue rose 7.1% to $20.89 billion. Analysts had expected $20.78 billion. Same-store sales increased 5.2%, the highest U.S. comp-store sales gain since the first quarter of 2016. Analysts were looking for a 5.3% increase.
“We posted solid results this quarter by capitalizing on delayed spring demand,” commented Marvin R. Ellison, who took the reins as Lowe’s president and CEO in July. “We are committed to driving even stronger performance in the future by sharpening our focus on retail fundamentals and by limiting any projects and initiatives that take us away from our core mission of being a great omnichannel home improvement retailer.
For the full year, Lowe's said it expects to earn between $4.50 and $4.60 a share, with same-store sales climbing as much as 3%. The company had previously been calling for earnings per share between $5.40 and $5.50, with same-store sales increasing as much as 3.5%. The new forecast takes into account the Orchard closures and inventory cuts.