First quarter sales at Lowe's dipped 1.6 percent

Lowe’s Companies Inc. (NYSE: LOW) reported a 1.6 percent decrease in sales for the quarter ended April 29, 2011. Sales for the first quarter 2011 totaled $12.2 billion, down from $12.4 billion a year ago. Net earnings totaled $461 million for the first quarter, a 5.7 percent decrease from the same period a year ago. Diluted earnings per share of $0.34 were flat compared to the first quarter of 2010. Comparable store sales for the first quarter decreased 3.3 percent.

 

During the quarter, Lowe’s opened four stores, including one relocation, and closed one store that was damaged by a tornado. As of April 29, 2011, Lowe’s operated 1,751 stores in the United States, Canada and Mexico representing 197.3 million square feet of retail selling space, a 1.6 percent increase over last year.

 

The mass merchant's business outlook for second quarter 2011 is:

Total sales are expected to increase approximately 4 percent.

The company expects comparable store sales to increase approximately 2 percent.

The company expects square footage growth of approximately 1.5 percent.

Earnings before interest and taxes as a percentage of sales (operating margin) are expected to increase 20 to 30 basis points.

Depreciation expense is expected to be approximately $370 million.

Diluted earnings per share of $0.65 to $0.69 are expected.

Lowe’s second quarter ends on July 29, 2011, with operating results to be publicly released on Aug. 15, 2011.