Building supplier Lowe’s (NYSE: LOW), the second largest retailer in the category after Home Depot (NYSE: HD) said its expectations for the fiscal year remain as they were when the company made forecasts in November. It issued the statement ahead of a meeting with analysts
For the fiscal year, the firm said,
Fiscal Year 2011 — a 53-week year (comparisons to fiscal year 2010 — a 52-week year)
— Total sales are expected to increase 2 to 3 percent, including the 53rd week
— The 53rd week is expected to increase total sales by approximately 1.5 percent
— The company expects comparable store sales to decline approximately 1 percent
— The company expects to open approximately 25 stores in 2011
— Earnings before interest and taxes as a percentage of sales (operating margin) are expected to decrease 80 to 90 basis points, which includes approximately 80 basis points impact from charges associated with store closings and discontinued projects
— Depreciation expense is expected to be approximately $1.5 billion
— Diluted earnings per share of $1.37 to $1.40 are expected for the fiscal year ending February 3, 2012, which includes approximately $0.20 per share impact from changes associated with store closings and discontinued projects
The news is particularly positive because of the weakness in the housing sector. It may be that as people cannot sell their homes, they are forced to repair and upgrade them
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