Lowe's gains solid results

Lowe's Companies, Inc. reported net earnings of USD 1.2 bn. for the quarter ending 29 July 2016, a 3.7 per cent increase over the same period a year ago. Diluted earnings per share increased 9.2 per cent to USD 1.31 from USD 1.20 in the second quarter of 2015. For the six months ending 29 July 2016, net earnings increased 14.0 per cent from the same period a year ago to USD 2.1 bn, and diluted earnings per share increased 20.5 per cent to USD 2.29.The second quarter results include a loss on a foreign currency hedge entered into in advance of the company's acquisition of Rona, inc., which decreased pre-tax earnings for the second quarter by USD 84 m. and diluted earnings per share by USD 0.06.  The six month period includes a net gain on the settlement of the foreign currency hedge, which increased pre-tax earnings by USD 76 m. and diluted earnings per share by USD 0.05.Sales for the second quarter increased 5.3 per cent to USD 18.3 bn. from USD 17.3 bn. in the second quarter of 2015, and comparable sales increased 2.0 per cent. For the six month period, sales were USD 33.5 bn., a 6.4 per cent increase over the same period a year ago, and comparable sales increased 4.4 per cent. Comparable sales for the U.S. home improvement business increased 1.9 per cent for the second quarter and 4.4 per cent for the six month period. "We delivered solid results for the first half of the year, in line with our expectations," commented Robert A. Niblock, Lowe's chairman, president and CEO. "We believe we are well positioned to capitalize on a favorable macroeconomic backdrop for home improvement in the second half of this year as we continue to execute on our strategic priorities to provide better omnichannel experiences, deepen our relationships with professional customers, and drive productivity and profitability."Lowe's Companies, Inc. is serving more than 17 million customers a week in the United States, Canada and Mexico. With fiscal year 2015 sales of USD 59.1 bn., Lowe's and its related businesses operate or service more than 2 355 home improvement and hardware stores and employ over 285 000 employees.