Lowe's Companies Inc. (LOW) Profit Takes a Hit
Lowe's Cos. cited a weak sales environment amid a continuing slump in the housing sector Monday as reasons for a 10.2 percent drop in third-quarter profit.
The nation's second largest home improvement chain suggested an industry recovery won't occur in early 2008 either as it slashed its outlook for the fourth quarter and the full year.
Its shares tumbled more than 7 percent in afternoon trading after hitting a new 52-week low earlier in the day.
It's been a tough quarter for home-improvement retailers. Home Depot Inc., Lowe's bigger rival, reported a 27 percent drop in third-quarter earnings last week and cut its full-year outlook, citing the persistent housing slump.
On a conference call with analysts, Lowe's Chairman and CEO Robert A. Niblock blamed slowing home sales, lower home prices and tightening of credit standards, all which hurt consumer spending on big-ticket items.
The nation's second largest home improvement chain suggested an industry recovery won't occur in early 2008 either as it slashed its outlook for the fourth quarter and the full year.
Its shares tumbled more than 7 percent in afternoon trading after hitting a new 52-week low earlier in the day.
It's been a tough quarter for home-improvement retailers. Home Depot Inc., Lowe's bigger rival, reported a 27 percent drop in third-quarter earnings last week and cut its full-year outlook, citing the persistent housing slump.
On a conference call with analysts, Lowe's Chairman and CEO Robert A. Niblock blamed slowing home sales, lower home prices and tightening of credit standards, all which hurt consumer spending on big-ticket items.
Labels: LOW, Lowe's Companies Inc.
posted by Stock Administrator @ 1:50 PM
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