Lowe’s asserted that its transformation plan is on track, as it registered a solid second quarter with a rise in both earnings and comparable store sales.
The home improvement retailer reported net earnings of $1.7 billion and diluted earnings per share of $2.14 for the quarter ended August 2, 2019, compared to net earnings of $1.5 billion and diluted earnings per share of $1.86 in the second quarter of 2018.
Excluding $14 million of pre-tax operating losses associated with the wind-down of the company’s Mexico retail operations, adjusted diluted earnings per share increased 3.9% to $2.15 from adjusted diluted earnings per share of $2.07 in the second quarter of 2018.
Sales for the second quarter increased 0.5% to $21 billion from $20.9 billion in the second quarter of 2018, and comparable sales increased 2.3%. Comparable sales for the U.S. home improvement business increased 3.2%.
“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,” said Marvin Ellison, Lowe’s president and CEO. “Our transformation is ongoing, and our future is bright. We are confident that we are on the right path to capitalize on solid demand in a healthy home improvement market and generate long-term profitable growth.”