Lowe’s reports Q1 net earnings decline of 21.6%

Mooresville, N.C.-based Lowe’s reported that net earnings fell 21.6% to $476 million for the first quarter ended May 1, 2009, compared with the same period a year ago. Diluted earnings per share declined 22% to $0.32 from $0.41 in the first quarter of 2008.

Sales for the quarter fell 1.5 % to $11.8 billion from $12 billion in the first quarter of 2008. Comparable-store sales for the first quarter declined 6.6%.

Lowe’s chairman and CEO Robert Niblock said that despite the challenging economic environment, Lowe’s continued to achieve market share gains in the first quarter and delivered sales within the company’s guidance range. “In addition, solid gross margin growth combined with appropriate expense management allowed us to deliver earnings per share above our guidance for the quarter,” he said.

Although bigger ticket projects continue to suffer because of the uncertain economic climate, the spring season has brought “relative strength” in smaller outdoor projects, Niblock said. He was encouraged to see an improvement in consumer confidence, a slowing in home price declines, and housing turnover showing signs of bottoming in certain markets.

“These are all positive signs for the stabilization and ultimate recovery of home improvement industry sales, but since many of these variables remain at or near historic lows, we will continue to plan conservatively and manage expenses appropriately,” he said.

Lowe’s said it opened 21 new stores in the quarter, bringing the total number of stores to 1,670 stores in the United States and Canada.