Lowes Companies (LOW) has reported 48.51 percent plunge in profit for the quarter ended Oct. 28, 2016. The company has earned $379 million, or $0.43 a share in the quarter, compared with $736 million, or $0.80 a share for the same period last year. On an adjusted basis, the company has earned $775 million, or $0.88 a share for the quarter.
Revenue during the quarter grew 9.60 percent to $15,739 million from $14,360 million in the previous year period. Gross margin for the quarter contracted 40 basis points over the previous year period to 34.35 percent. Total expenses were 95.07 percent of quarterly revenues, up from 91.73 percent for the same period last year. That has resulted in a contraction of 334 basis points in operating margin to 4.93 percent.
Operating income for the quarter was $776 million, compared with $1,187 million in the previous year period.
"Our third quarter operating results were below our expectations due to slower sales in the first two months of the quarter," commented Robert A. Niblock, Lowe's chairman, president and chief executive officer. "While we expected moderation in the second half of the year, traffic slowed more than we anticipated in August and September before improving in October, which put pressure on our profitability in the quarter.
For fiscal year 2016, Lowes Companies expects revenue to grow in the range of 9 percent to 10 percent. The company expects diluted earnings per share to be $3.52.
Operating cash flow improvesLowes Companies has generated cash of $5,269 million from operating activities during the nine month period, up 15.90 percent or $723 million, when compared with the last year period. The company has spent $3,052 million cash to meet investing activities during the nine month period as against cash outgo of $986 million in the last year period. It has incurred net capital expenditure of $792 million on net basis during the nine month period, down 0.13 percent or $1 million from year ago period.
The company has spent $1,656 million cash to carry out financing activities during the nine month period as against cash outgo of $2,790 million in the last year period.
Cash and cash equivalents stood at $960 million as on Oct. 28, 2016, down 21.76 percent or $267 million from $1,227 million on Oct. 30, 2015.
Debt moves upLowes Companies has witnessed an increase in total debt over the last one year. It stood at $15,195 million as on Oct. 28, 2016, up 20.71 percent or $2,607 million from $12,588 million on Oct. 30, 2015. Total debt was 42.96 percent of total assets as on Oct. 28, 2016, compared with 37.40 percent on Oct. 30, 2015. Debt to equity ratio was at 2.27 as on Oct. 28, 2016, up from 1.50 as on Oct. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
