Lowe’s: Reaffirms ’09 guidance, warns of charges

Mooresville, N.C. Lowe’s Cos. said Tuesday it is reaffirming its 2009 profit and sales outlook, but the company warned it may write off up to $100 million in operating store charges during the last half of fiscal 2009.

Lowe’s still expects sales to be down about 3.0% for the fiscal year, which ends Jan. 29, translating into about $46.78 billion compared with $48.2 billion a year ago.

Analysts expect 2009 revenue of $46.86 billion.

Lowe’s said same-store sales are expected to decline between 7% and 9%.

The company also said it may take up to $100 million in operating store impairment charges but has not adjusted its 2009 outlook due to the uncertainty of the potential charges.

The retailer said it expects 2010 sales to rise between 3% and 4%, and same-store sales to rise around 1.0%.

CEO Robert A. Niblock said in a statement that more consumers are tackling home-improvement projects on their own, given the weak economy.

"We continue to invest in our business and drive operating efficiencies to become a more efficient company and better serve the needs of home improvement customers," he said.

Lowe's also said it is closing one unprofitable store in Milwaukee, but opening between 62 stores and 66 stores in 2009. In fiscal 2010, Lowe's plans to open between 35 stores and 45 stores.