Shares of Lowe’s fell more than 5 percent Monday as the No. 2 U.S. home improvement retailer posted 10-percent lower earnings for the quarter ending Aug. 3 and failed to meet analysts’ expectations.
Lowe’s, which operates 1,748 stores in the United States, Canada and Mexico including two in the Santa Clarita Valley, said its second-quarter sales fell by 2 percent to $14.2 billion from $14.5 billion a year earlier. The company blamed most of the decline – $259 million, or 1.8 percent of the total – on a shift in its accounting calendar.
Lowe’s managed to post a $747 million profit for the quarter despite a 0.4-percent decline in same-store sales (down 0.2 percent among U.S. stores).
“Our results fell short of our overall expectations,” CEO Robert A. Niblock said in a statement. “However, I have confidence in our strategy and in our employees, and while we recognize the significant magnitude of change that we’ve asked the organization to absorb as we transform our business, we fully understand that we must improve our level of execution.”
A charge of $15 million relating to a previously announced reduction in the company’s U.S. headquarters staff also impacted third-quarter profits.
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