Richard Drew/Associated Press
Robert Niblock, chief executive of Lowe’s, said consumer spending was increasing.
The results are a sign that people are beginning to feel better about spending money on their homes as the housing market slowly recovers.
Lowe’s chief executive, Robert A. Niblock, said the company was seeing a pickup in spending even in areas of the country hit hardest by the housing slump, like Florida, Arizona and California.
“Rising home values have given homeowners additional confidence in spending on their homes,” Mr. Niblock said in an interview.
Lowe’s net income fell 11 percent from the previous year’s quarter, which included an extra week of revenue. Its earnings forecast for the year was below expectations but its revenue projection beat the consensus.
Lowe’s has revamped its pricing structure, offering what it says are permanent low prices on many items across the store instead of fleeting discounts. It has also focused on hiring more workers and improving its inventory.
In a call with analysts, Lowe’s chief customer officer, Gregory M. Bridgeford, said the pricing strategy helped spur strong sales of cabinets and countertops, tools and outdoor power equipment.
Lowe’s reported net income totaled $288 million, or 26 cents per share, for the three months ended Feb. 1. That was down from $322 million, or 26 cents a share, a year earlier. Analysts expected 23 cents a share in the latest quarter, according to FactSet.
There were 11 percent fewer shares outstanding in the latest quarter than a year ago. An extra week in the quarter last year had increased year-earlier earnings by 5 cents a share.
Revenue fell 5 percent to $11.05 billion from $11.63 billion a year earlier. Analysts had expected sales of $10.85 billion. Revenue in stores open at least one year rose 1.9 percent. The measure is an important gauge of a retailer’s fiscal health because it excludes stores that open or close during the year.
Lowe’s, which operates 1,754 stores in the United States, Canada and Mexico, expects fiscal 2013 net income of $2.05 a share. Analysts expect $2.10 a share.
The company expects revenue to rise 4 percent, implying revenue of $52.54 billion. Analysts expect $51.69 billion.
Lowe’s Fourth-Quarter Earnings Beat Expectations
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Lowe’s Fourth-Quarter Earnings Beat Expectations
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Lowe’s Fourth-Quarter Earnings Beat Expectations
