Lowe's was out with second-quarter earnings Wednesday morning, reporting net earnings of $1.2 billion for the quarter ended July 29, 2016, a 3.7% increase over the same period a year ago. Diluted earnings per share increased 9.2% to $1.31 from $1.20 in the second quarter of 2015.
The second-quarter results include a loss on a foreign currency hedge entered into in advance of the company's acquisition of RONA, inc. (RONA), which decreased pre-tax earnings for the second quarter by $84 million and diluted earnings per share by $0.06.
Sales for the second quarter increased 5.3% to $18.3 billion from $17.3 billion in the second quarter of 2015, and comparable sales increased 2.0%.
The company lowered its guidance for the rest of the year. MarketWatch reports:
Lowe's Cos. cut its guidance for the year and posted earnings sharply below expectations in the latest quarter as the home-improvement retailer reported disappointing comparable sales growth.
For 2016, the company now expects earnings of about $4.06 a share, down from previous guidance for $4.11 a share. Lowe's backed its guidance for comparable-store sales to rise 4%. Total sales are expected climb 10%, above analyst estimates for 8% growth.
Wednesday's report from Lowe's follows strong results from larger rival Home Depot Inc. on Tuesday.