September 23, 2008 – Journal: Lowe’s may trim new store openings
An article on Monday in the Wall Street Journal questioned whether Lowe’s Companies, Inc. will trim the number of its new store openings because of the tight economy.
The cuts could come as a result of a decline in home sales and home remodeling projects during the past year.
Lowe’s has been named as the anchor store in a development proposed by Christie Development Associates, LLC of Overland Park, at the northwest corner of 24th Avenue and Industrial Road.
A Lowe’s spokesman was not able to provide a response from the company by press time.
The Emporia-Lyon County Area Metropolitan Planning Commission will consider changing zoning of the property to retail development during a meeting tonight at 7 p.m. in the Little Theater at W.L. White Auditorium.
The land is surrounded by residential developments on the north and east, the water treatment plant in Dryer Park, and a nursing home and retail businesses to the south. The land currently is zoned for agriculture use.
Information about Lowe’s possible plans for store openings, the 2008 Analyst & Investor Conference, will be broadcast Wednesday on the Web beginning at 9 a.m. Central Daylight Time. The Webcast can be seen at www.Lowes.com/investor. Click on “Lowe’s 2008 Analyst & Investor Conference Webcast.”
A replay of the conference will be broadcast shortly after the event and can be accessed at the same Web address; click on “Webcast Events.”
According to a press release posted on the Lowe’s Web site, the company reported net earnings of $938 million for the quarter that ended on Aug. 1, 2008. The figure was down 7.9 percent from the same period last year.
Net earnings declined 12.1 percent to $1.54 billion for the six months ending on Aug. 1, 2008, while diluted earnings per share declined 8.7 percent to $1.05, the press release stated.
Sales for the quarter, however, increased 2.4 percent to $14.5 billion, up from $14.2 billion in the second quarter of 2007.
Comparable store sales for the second quarter declined 5.3 percent and declined 6.7 percent in the first half of 2008, the release stated.
In the meantime, dividends were $0.085 per share in August, and will be $0.085 per share during the dividend period payable on Oct. 31.
Dividends during the previous four quarters were $0.08 per share.
“Our sales results for the quarter, while better than our forecast, reflect the realities of the continuing macro economic pressures on our industry,” Chairman and Chief Executive Officer Robert A. Niblock said in the release.
Niblock said that the second quarter sales had benefited from the financial stimulus tax rebates.
“Unfortunately, weakness in bigger ticket projects continues, particularly in markets most impacted by the housing downturn,” Niblock said.
Lowe’s opened 23 new stores, bringing its total number of stores to 1,577 in the United States and Canada.
The news release predicted the company would open approximately 38 new stores in the third quarter of 2008, with total sales increasing one to two percent. The company expects comparable store sales to decline five to seven percent.
It projects a total of 120 store openings in 2008, with similar total-sales increases and store sales declines as those projected for the third quarter of 2008.