Lowe's 2Q results miss expectations, cuts outlook |
| Sacramento Bee - Aug 20, 2012 |
Lowe's posted a 10 percent drop in second-quarter net income, hurt by a timing shift and a charge tied to job cuts. Its performance missed Wall Street's expectations.
The world's second-biggest home improvement retailer also lowered its fiscal 2012 earnings and revenue outlooks on Monday.
Lowe's Cos. shares fell more than 6 percent in premarket trading.
Lowe's performance was in contrast to last week's report from rival Home Depot Inc., which offered encouraging news about the beleaguered housing market. The nation's largest home improvement retailer last week boosted its full-year outlook, citing its performance so far this year. And said that strong cost controls and healthy sales of paint, bathroom accessories and kitchen installations helped lift its net income by 12 percent during the period.
In response to stiff competition from Home Depot and a still weak home market, Lowe's has been working on strengthening customer service, reviewing all of its products and focusing more on e-commerce business. The chain last summer returned to its "everyday low price" strategy" by making price cuts permanent on a wide array of products across different categories. When the housing market slumped in 2006, Lowe's had strayed by ramping up temporary discounts across the stores. But the pricing strategy is expected to take time to resonate with shoppers, accustomed to big discounts.
Read more here: http://www.sacbee.com/2012/08/20/4740574/lowes-2q-net-income-falls-revenue.html#storylink=cpy
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- Posted: 2012-08-20 11:46:43
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