Lowe's Reports Fourth Quarter and Fiscal Year 2007 Earnings
Lowe's Reports Fourth Quarter and Fiscal Year 2007 Earnings Monday February 25, 7:00 am ET
MOORESVILLE, N.C., Feb. 25 /PRNewswire-FirstCall/ -- Lowe's Companies, Inc. (NYSE: LOW - News), the world's second largest home improvement retailer, today reported net earnings of $408 million for the quarter ended February 1, 2008, a 33.4 percent decline over the same period a year ago. Diluted earnings per share declined 30.0 percent to $0.28 from $0.40 in the fourth quarter of 2006. For the fiscal year ended February 1, 2008, net earnings declined 9.5 percent to $2.81 billion while diluted earnings per share declined 6.5 percent to $1.86.
Sales for the quarter declined 0.3 percent to just under $10.4 billion. For the fiscal year ended February 1, 2008, sales increased 2.9 percent to $48.3 billion. Comparable store sales declined 7.6 percent for the fourth quarter and 5.1 percent for fiscal 2007.
"Fourth quarter and fiscal year 2007 sales fell short of our plan as we faced an unprecedented decline in housing turnover, falling home prices in many areas and turbulent mortgage markets that impacted both sentiment related to home improvement purchases as well as consumers' access to capital," explained Robert A. Niblock, Lowe's chairman and CEO. "While our results fell short of our expectations, I want to thank our more than 215,000 employees whose customer focus allowed us to capture market share in both the quarter and the year. Those market share gains combined with appropriate expense management in a very challenging environment for the home improvement industry allowed us to deliver respectable annual earnings per share.
"As we look to fiscal 2008, we know the next several quarters will be challenging on many fronts as industry sales are likely to remain soft," Niblock continued. "We remain focused on what we can control: providing great customer service while managing expenses and offering customers the best shopping experience in home improvement. As the year progresses, the recent Federal Reserve interest rate cuts and the approved fiscal stimulus package are expected to lend support to the broader economy and the consumer. As a result, many of the headwinds facing the housing market and the home improvement industry should lessen, and consumers' confidence in investing in and improving their homes should improve."
During the quarter, Lowe's opened 72 new stores including two relocations. As of February 1, 2008, Lowe's operated 1,534 stores in the United States and Canada representing 174.1 million square feet of retail selling space, a 10.9 percent increase over last year.
A conference call to discuss fourth quarter and fiscal 2007 operating results is scheduled for today (Monday, February 25) at 9:00 a.m. EST. Please dial 888-817-4020 (international callers dial 706-679-8762) to participate. A webcast of the call will take place simultaneously and can be accessed by visiting Lowe's website at