Lowe’s Net Balloons 39 Percent in Fourth Quarter

       

       

MOORESVILLE, N.C.–Stringent expense controls fueled a 39 percent gain in net income for Lowe’s in its fourth quarter, to $285 million.

Selling, general and administrative expenses for the quarter, which ended on Jan. 28, were virtually flat on a dollar basis and dropped 65 basis points as a percentage of sales, to 26.6 percent. Also, gross margin rose 60 basis points to 35.6 percent as the home-improvement retailer was able to keep a lid on cost of sales. Net sales were $10.5 billion, up 3.1 percent from last year’s fourth quarter and including a 1.1 percent rise in same-store sales.

The fourth-quarter jump in profit pushed Lowe’s net income for the whole fiscal year up 13 percent to $2 billion. Net sales increased 3.4 percent to $48.8 billion.

Speaking about Lowe’s “solid results” for the quarter, Robert Niblock, chairman and chief executive officer, said, “While uncertainty in the market remains, the economic recovery is continuing.”

Posted in News, Retail.

Last updated: February 23, 2011