Lowe's Companies Inc. (Mooresville, N.C.) on Monday reported net earnings of $747 million for the second quarter, a 10 percent decrease from the same period a year ago. For the company's first six months of this fiscal year, earnings are down 1.3 percent from the same period in 2011.
Sales for the most recently completed second quarter decreased 2.0 percent to $14.2 billion from $14.5 billion in the second quarter of 2011. For the six-month period, sales were $27.4 billion, a 2.5 percent increase over the same period a year ago. The company attributed some of the decline in earnings to a shorter reporting period for its current fiscal year.
Comparable store sales for the second quarter decreased 0.4 percent, while comparable store sales for the U.S. business decreased 0.2 percent. For the latest six-month period, comparable store sales increased 1.0 percent, while comparable store sales for the U.S. business increased 1.2 percent.
"Our results fell short of our overall expectations," said Lowe's Chairman, President and CEO Robert Niblock. "However, I have confidence in our strategy and in our employees, and while we recognize the significant magnitude of change that we've asked the organization to absorb as we transform our business, we fully understand that we must improve our level of execution."
With its latest earnings report, the company updated its expectations for the full fiscal year. It now expects: Total sales to be approximately flat Comparable store sales to increase approximately 0.5 percent To open approximately 10 stores in fiscal year 2012. Lowe's currently operates 1,748 stores in North America.
