new York Times reports that Lowe's Fourth Quarter profit rose 27%. These resuklts came from cutting costs and nd a modest sales gain according to figures released by the retailer.
Lowes said it expects sales to rise this year as the housing market and broader economy recover. Forecasted earnings for the spring quarter were below analyst expectations which led to lower share prices in early trading activity.
Home improvement retailers have seen their business decrease dramatically as the housing downturn continues and homeowners are still concerned about the economy. This may change according to Lowe's CEO Robert A Niblock,'' the worst of the economic cycle is likely behind us,'' CEO Robert A. Niblock said.
He said the ''psychological impact'' of falling home prices and job worries continue to weigh on consumers, but improving sales trends, including more purchases of higher-ticket items, are an ''encouraging sign'' consumers will begin to take on larger home-improvement projects.
Quarterly profit rose 27 percent to $205 million, or 14 cents per share, from $162 million, or 11 cents per share last year.Revenue edged up nearly 2 percent to $10.17 million, from $9.98 billion last year.
The company, based in Mooresville, N.C., said sales in stores open at least a year fell 1.6 percent. The measure is considered a key gauge of a retailer's financial health because it measures sales at existing stores rather than newly opened ones.
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