MOORESVILLE, N.C.–Net income for Lowe’s totaled $489 million in the second quarter, an increase of 2.7 percent from the second quarter of a year ago.
The rise in the bottom line came about largely because the home-improvement retailer’s net sales rose 4.7 percent to $12.4 billion in the quarter, which included a 2.4 percent gain in same-store sales. Robert Niblock, Lowe’s chairman and chief executive officer, said shoppers have shown more interest in home-improvement projects as the economy has turned around, especially in those projects that involve purchases of big-ticket items.
Combined with government stimulus programs and favorable weather in March and April, this factor helped drive the quarterly sales gain, Niblock said.
Lowe’s gross margin was down 28 basis points to 35.2 percent. Total expenses increased 4 percent (including a 4.5 percent rise in selling, general and administrative but dropped 20 basis points as a percentage of sales.
The company said it now expects sales for all of fiscal year 2010 to rise from 5 to 7 percent, with a 2 to 4 percent gain in same-store sales.