Lowe's continues to feel market pressure

Mooresville, N.C.-based Lowe's posted third-quarter earnings of $344 million, down 29.5% from the same period a year ago.

Net sales for the quarter declined 3% to $11.4 billion. Comparable-store sales were negative 7.5% for the third quarter, in which the company opened 12 stores and closed one.

"The broad-based pressures of the macro environment are clearly evident in our sales as consumers continue to delay large purchases until they feel better about the economic outlook,” commented Robert Niblock, Lowe’s chairman and CEO. “While consumer spending remained weak, we were pleased with our sequential improvement in comparable-store sales from the second quarter and continued evidence of solid market share gains."

In the second quarter, comps were 9.5%, a full two percentage points worse than the third quarter.

Some of the hardest hit housing markets -- which Niblock identified as California, Florida and the desert Southwest -- showed signs of improvement.

“As the economy and the housing market continue through the bottoming and recovery process, we know there will be ongoing macroeconomic challenges, including declining home values and rising unemployment," Niblock added. "However, we are encouraged by the signs of stabilization in our business."

Lowe's reported earnings of 23 cents per share, while analysts had expected earnings of about 24 cents a share and revenue of about $11.28 billion.

In the fourth quarter, the company expects total sales to be flat, and comparable-store sales to fall in the negative 2% to negative 6% range.

The company's report will be followed tomorrow by chief rival Home Depot's third-quarter earnings announcement.