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Lowe's +5% on raising adjusted operating margin and earnings outlook for FY2019
Lowe's (NYSE:LOW) reports comparable-store sales rose 2.2% in Q3 vs. consensus of +3.2%.
Comp for the U.S. home improvement business grew 3%.
Gross margin rate up 156 bps to 32.44%.
SG&A expense rate improved 126 bps to 21.69%.
Operating margin rate expanded 346 bps to to 8.96%.
Merchandise inventory +10.9% to $13.72B.
Home improvement and hardware stores -129 Y/Y to 2,004.
The company repurchased $835M of stock and paid $428M in dividends during the quarter.
The company announced the closure of 34 underperforming stores in Canada.
[b]FY2019 Guidance[/b]: Total sales: ~+2%; Comparable-store sales: ~+3%; Operating margin rate: +290 bps to +320 bps; Adjusted operating rate: +40 bps to +60 bps; Tax rate: ~24%; Diluted EPS: $5.35 to $5.47; Adjusted EPS: $5.63 to $5.70.
LOW +4.9% premarket.
Previously: Lowe's EPS beats by $0.06, misses on revenue (Nov. 20)
Lowe's (NYSE:LOW) reports comparable-store sales rose 2.2% in Q3 vs. consensus of +3.2%.
Comp for the U.S. home improvement business grew 3%.
Gross margin rate up 156 bps to 32.44%.
SG&A expense rate improved 126 bps to 21.69%.
Operating margin rate expanded 346 bps to to 8.96%.
Merchandise inventory +10.9% to $13.72B.
Home improvement and hardware stores -129 Y/Y to 2,004.
The company repurchased $835M of stock and paid $428M in dividends during the quarter.
The company announced the closure of 34 underperforming stores in Canada.
[b]FY2019 Guidance[/b]: Total sales: ~+2%; Comparable-store sales: ~+3%; Operating margin rate: +290 bps to +320 bps; Adjusted operating rate: +40 bps to +60 bps; Tax rate: ~24%; Diluted EPS: $5.35 to $5.47; Adjusted EPS: $5.63 to $5.70.
LOW +4.9% premarket.
Previously: Lowe's EPS beats by $0.06, misses on revenue (Nov. 20)
