Lowe's delivered second-quarter earnings that topped Wall Street's expectations, but the retailer trimmed its outlook for full-year sales growth.
Lowe's shares sank in premarket trading following the report. (Click here to get the latest quotes.)
The home improvement giant posted quarterly earnings of $1.04 per share, versus 88 cents per share in the comparable year-ago period. It posted revenue of $16.6 billion, compared to $15.71 billion a year ago.
Analysts had expected Lowe's to report earnings per share of $1.02 per share on $16.55 billion in revenue, according to a consensus estimate from Thomson Reuters.
Second-quarter same-store sales were up 4.4 percent, the company said, however the company trimmed its outlook for full-year sales to an increase of about 3.5 percent from a rise of 4 percent.
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"We were able to recover most of the outdoor product sales missed in the first quarter due to unfavorable weather conditions," Robert A. Niblock, Lowe's chairman, president, and CEO said in a statement. "We believe home improvement spending will continue to progress in tandem with strengthening job and income growth."
The retail sector overall has been hit by a rash of mediocre earnings, and analysts are watching to see if North Carolina-based Lowe's defies or confirms the trend. This is especially true given mounting questions surrounding the housing recovery, which traditionally spills over into the results of home builders and retailers.