After reporting better than expected figures for the fiscal 2007 fourth quarter (although Lowe's beat analyst expectations, it still experienced a 7.6% decrease in same store sales during the quarter and a 5.1% decrease in same store sales for the full year), Lowe's announced that the company was pulling back on their prior expansion plans for FY 2008. Rather than opening 135 to 145 stores during the year as the company stated in September, Lowe's plans on opening about 120 stores during the year; the decrease is management's response to visibly tough conditions in the housing market and domestic economy.
Lowe's reported a slight (3.2%) increase in sales in the fiscal third quarter of 2007 compared to the same quarter last year. However, gross profit declined 2.6% and net profit declined 10.2%, largely due to product price markdowns due to poor sales. Also Lowe's saw a continuing downward trend in comparable store sales, which decreased 4% during the quarter. Lowe's management stated that they expect poor results to continue in light of difficult economic conditions.
Lowe's announced a quarterly profit of nine percent, which exceeded expectations of the market. The net revenue increased to $14.17 billion from $13.39 billion last year. This led to an increase in the stock price in the early trading. However, the company reduced its earnings outlook for the year as the sales at the stores open for at least a year decreased by 2.6 percent.
Lowe's reports an 11% drop in profits in the fourth quarter of 2006.
Lowe's announces plans to open 5 stores in Mexico in 2009.
Larry Stone is promoted to his current position as President of Lowe's.
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