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Lowe's Q3 profit plummets 44% on store-closing charges
Mooresville, N.C. -- Lowe's Cos. reported Monday that net income for the quarter ended Oct. 28 dropped 44% as store-closing charges undercut a slight uptick in quarterly sales.
The home-improvement retailer reported net earnings of $225 million, compared with $404 million in the year-ago period. Charges related to store closures amounted to a pre-tax earnings reduction of $336 million.
Sales increased 2.3% to $11.9 billion, up from $11.6 billion a year earlier. Same-store sales edged up 0.7%, reversing declines in two prior quarters.
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Labor issues loom north of the border
Unemployment is a double-edged sword when it comes to the retail industry. The high single-digit rate in the United States means retailers can be more selective in their choice of hourly workers but the downside of fewer people working is less money sloshing around the economy for shoppers to spend. The situation in Canada is the opposite of the United States, and there are some major implications for Target.