Lowe’s Gives Profit, Sales Outlook

Home improvement retailer Lowe’s Cos. said it expects earnings to grow 19% to 20% annually over the next two years, with revenue up 18% to 19%, helped by its expansion into lucrative urban markets.

Lowe’s, which ranks behind Home Depot Inc., also said it expects to meet the upper end of its third-quarter earnings guidance of 39 cents to 40 cents a share and full-year guidance of $1.74 to $1.75.

Analysts polled by Thomson First Call have estimated Lowe’s would post a profit of $2.08 a share for its fiscal 2003, which would represent about a 19% increase over the consensus per-share profit estimate of $1.75 for fiscal 2002. The consensus estimate for its third-quarter profit is 40 cents a share.

Lowe’s shares fell $1.17 to $42.48 on the NYSE.