Lowe's (NYSE: L) on Wednesday reported second-quarter earnings and revenue that surpassed analysts' expectations, but same-store sales fell short and weren't nearly as strong as rival Home Depot (NYSE: HD)
The North Carolina-based home improvement retailer also announced it will be shuttering its 99 Orchard Supply Hardware stores by year-end to "aggressively rationalize store inventory."
Net income was $1.52 billion, or $1.86 a share, compared with $1.42 billion, or $1.68 per share, a year ago. Excluding one-time items, Lowe's earned $2.07 a share, five cents ahead of analysts' expectations.
Revenue climbed 7.1% to $20.89 billion, again ahead of the $20.78 billion anticipated by analysts.
Sales at Lowe's stores open for at least 12 months were up 5.2%, compared with a forecast for growth of 5.3%.
Marvin Ellison, former J.C. Penney (NYSE: JCP) CEO and a top executive at Home Depot for more than a decade, just took the helm as CEO of Lowe's last month, succeeding Robert Niblock.
Looking to the full year, Lowe's said it expects to earn between $4.50 and $4.60 a share, with same-store sales climbing as much as 3%. The company had previously been calling for earnings per share between $5.40 and $5.50, with same-store sales increasing as much as 3.5%.
Lowe's shares are up about 6% so far this year, bringing the company's stock value to about $80.1 billion.
Shares dropped 18 cents to $49.93
