EARNINGS HIGHLIGHTS
Lowe's (NYSE:LOW) reports comparable-store sales rose 2.3% in Q2 vs. consensus of +1.8%.
Comp for the U.S. home improvement business increased 3.2%.
Gross margin rate fell 85 bps to 32.11%.
SG&A expense rate improved 17 bps to 19.29%.
Operating margin rate advanced 98 bps to to 11.34%.
Merchandise inventory +15.5% to $13.73B.
Home improvement and hardware stores -152 Y/Y to 2,003.
The company repurchased $1.96B of stock and paid $382M in dividends during the quarter.
"We capitalized on spring demand, strong holiday event execution and growth in Paint and our Pro business to deliver strong second quarter results. Despite lumber deflation and difficult weather, we are pleased that we delivered positive comparable sales in all 15 geographic regions of the U.S. This is a reflection of a solid macroeconomic backdrop and continued momentum executing our retail fundamentals framework," commented Marvin R. Ellison, Lowe's (LOW) president and CEO.
FY2019 Guidance: Total sales: ~+2%; Comparable-store sales: ~+3%; Operating margin rate: +310 bps to +340 bps; Adjusted operating rate: +20 bps to +50 bps; Tax rate: ~24%; Diluted EPS: $5.54 to $5.74; Adjusted EPS: $5.45 to $5.65.
source seekign alpha
Lowe's (NYSE:LOW) reports comparable-store sales rose 2.3% in Q2 vs. consensus of +1.8%.
Comp for the U.S. home improvement business increased 3.2%.
Gross margin rate fell 85 bps to 32.11%.
SG&A expense rate improved 17 bps to 19.29%.
Operating margin rate advanced 98 bps to to 11.34%.
Merchandise inventory +15.5% to $13.73B.
Home improvement and hardware stores -152 Y/Y to 2,003.
The company repurchased $1.96B of stock and paid $382M in dividends during the quarter.
"We capitalized on spring demand, strong holiday event execution and growth in Paint and our Pro business to deliver strong second quarter results. Despite lumber deflation and difficult weather, we are pleased that we delivered positive comparable sales in all 15 geographic regions of the U.S. This is a reflection of a solid macroeconomic backdrop and continued momentum executing our retail fundamentals framework," commented Marvin R. Ellison, Lowe's (LOW) president and CEO.
FY2019 Guidance: Total sales: ~+2%; Comparable-store sales: ~+3%; Operating margin rate: +310 bps to +340 bps; Adjusted operating rate: +20 bps to +50 bps; Tax rate: ~24%; Diluted EPS: $5.54 to $5.74; Adjusted EPS: $5.45 to $5.65.
source seekign alpha