Lowe’s Reaffirms Earnings Guidance

Mooresville NC, Sept. 22, 2009–Lowe’s reaffirmed its fiscal 2009 profit and sales outlook, but the home improvement retailer warned it may need to write off up to $100 million during the second half of the year.

The company still expects full-year earnings of $1.13 to $1.21 per share, with sales down about 3 percent for the fiscal year ending Jan. 29.

Based on year-ago sales of $48.2 billion, that implies revenue around $46.78 billion.

Analysts expect 2009 net income of $1.20 per share on higher revenue of $46.86 billion.

Sales at established stores, an important retail metric called same-store sales, are expected to decline between 7 percent and 9 percent, Lowe’s said.

Lowe’s also said it may take up to $100 million in operating store impairment charges but has not adjusted its 2009 outlook due to the uncertainty of the potential charges.

In a statement, Chief Executive Robert A. Niblock said that more consumers are tackling home improvement projects on their own, given the weak economy.