Lowe's FY 2010 view may fall short, shares down

Discussion in 'Stocks' started by S2007S, Sep 22, 2009.

  1. S2007S

    S2007S

    Lowe's FY 2010 view may fall short, shares down

    * On Tuesday September 22, 2009, 10:33 am EDT


    By Dhanya Skariachan


    BANGALORE (Reuters) - Home improvement retailer Lowe's Cos Inc (NYSE:LOW - News) forecast earnings for its next fiscal year that could fall short of Wall Street expectations, sending its shares down 2.3 percent.

    Lowe's, the No. 2 U.S. home improvement chain behind Home Depot Inc (NYSE:HD - News), said last month it expected a recovery in the North American market starting in the first quarter of 2010 after a U.S. housing slump led homebuilders and consumers to put off major renovations and related purchases.

    "Consumers are shifting to more do-it-yourself projects as they balance convenience with the cost of outsourcing," Lowe's Chief Executive Robert Niblock said ahead of a company meeting on Tuesday with analysts and investors at its headquarters in Charlotte, North Carolina.

    For its fiscal year 2010, ending January 28, 2011, Lowe's forecast earnings of $1.24 to $1.34 a share and a sales rise of 3 percent to 4 percent. Analysts' average forecast is $1.33 a share on sales of $48.36 billion, according to Reuters Estimates.

    Lowe's stood by its previous forecast for fiscal 2009, which ends on January 29. It expects earnings of $1.13 to $1.21 a share on a sales decline of 3 percent. It said it may have to take impairment charges of up to $100 million due to uncertainty about economic recovery.

    According to Reuters Estimates, analysts expect the company to report sales of $46.84 billion and earnings of $1.20 a share for fiscal 2009.

    The company, which recently decided to slow its North American store expansion after a 19 percent drop in quarterly profit, said future growth would be fueled by prudent store expansion in underserved markets and internationally.

    The news came nearly a month after Lowe's made its first foray outside North America -- a joint venture with Woolworths Ltd (ASX:WOW.AX - News), Australia's largest retailer.

    Lowe's shares were down 51 cents, or 2.3 percent, at $21.44 in morning trading on the New York Stock Exchange.
     
  2. we get our financial news from bangalore, and we wonder why our country is falling apart
     
  3. i do a bit of construction work. every time i go to lowes i walk out saying lowes sucks.
     
  4. Lowes is across the street from HD, I've been to both but prefer HD. I seldom buy anything at lowes.
     
  5. jnorty

    jnorty

    wow lowes down a big 3% after running 80% since march