Lowe's 2Q earnings down 7.9%

MOORESVILLE, N.C. Lowe's reported net earnings of $938 million for the quarter ended Aug. 1, a 7.9% decline from the same period a year ago. Diluted earnings per share declined 4.5% to 64 cents from 67 cents in the second quarter of 2007.

Sales for the quarter increased 2.4% to $14.5 billion, up from $14.2 billion in the second quarter of 2007. Comparable-store sales for the second quarter declined 5.3% and declined 6.7% in the first half of 2008.

"Our sales results for the quarter, while better than our forecast, reflect the realities of the continuing macro economic pressures on our industry," commented Robert Niblock, Lowe's chairman and ceo. "We saw relative strength in our seasonal sales as homeowners welcomed back spring and restored lawns and outdoor landscaping following the effects of last year's drought in much of the country. In addition, we believe our second quarter sales benefited from the economic impact of the fiscal stimulus tax rebates. Unfortunately, weakness in bigger ticket projects continues, particularly in markets most impacted by the housing downturn.