Lowe’s profit beats expectations

Mooresville, N.C. Even though Lowe’s Co. reported its profits fell to $476 million for the first quarter ended May 1, compared with $607 million a year earlier, the chain’s results were higher than expected and prompted the chain to raise its forecast for the rest of the year.

While the chain continues to be impacted by shoppers who are still refraining from big-ticket projects, “as spring arrived we saw relative strength in smaller, outdoor projects,” said Robert A. Niblock, chairman and CEO, Lowe's.

The home-improvement chain’s sales slipped 1.5% to $11.83 billion. Same-store sales dropped 6.6%.

During the quarter, Lowe's opened 21 new stores, bringing the chain to 1,670 stores in the United States and Canada. This represents a 7.0% increase in retail square feet of selling space over last year.

Looking forward to the remainder of the fiscal year, the chain expects total sales to range between a decline of 2% and an increase of 1%. Same-store sales could decline 4% to 8%. Lowe’s expects to open 60 to 70 stores.