MOORESVILLE, N.C.–Pointing to the housing meltdown, fuel and food price increases, and rising unemployment, Lowe’s today reported an 18 percent drop in net earnings to $607 million for the first quarter ended May 2. During the same period a year ago, earnings had been $739 million.
The drop was reflected in a decline in the value of diluted earnings per share of 41 cents, down 14.6 percent from the 48 cents per share in the year-ago period.
The results were based on a decline in sales of 1.3 percent to $12 billion.
Robert A. Niblock, chairman and chief executive officer, said that economic woes “eroded consumer confidence and impacted discretionary purchases for the home.”
In spite of the bleak financial news, Niblock said that the giant home center “continued to gain market share in the quarter, and diligent expense control helped us achieve respectable earnings in spite of the headwinds facing the industry.”
Lowe’s shares last traded at $24.89. Its high during the past 52 weeks was $33.19.