Lowe’s reported weaker-than-expected earnings and sales for the second quarter, while the home improvement retailer lowered its outlook for operating margins amid plans to invest in ways that attempt to boost sales.
Fiscal second quarter adjusted earnings rose to $1.57 per share from $1.37 a year ago, but that missed the $1.63 estimate from analysts polled by Capital IQ. Revenue increased 6.8% to $19.5 billion, but that was also below the consensus on Wall Street, for about $19.6 billion. “While our results were below our expectations in the first half of this year, the team remains focused on making the necessary investments to improve the customer experience and drive sales,” said Robert A. Niblock, chief executive officer of the Mooresville, North Carolina-based retailer. “This includes amplifying our consumer messaging and incremental customer-facing hours in our stores which will put pressure on our operating margin.”