Slowing economy hurting home-improvement chain

Monday, Dec. 11, 2000 | 11:33 a.m.

Lowe's Cos., the second-largest U.S. home-improvement chain, warned today that a slowdown in sales will leave it with earnings lower than Wall Street analysts expect this quarter.

In its second earnings warning in two months, the Wilkesboro, N.C.-based retailer said earnings for the quarter ending Feb. 2 would be between 40 cents and 42 cents a share. Analysts surveyed by First Call/Thomson Financial had been expecting 46 cents.

"It is clear that softer sales trends will be difficult to overcome over the balance of the quarter," said Chief Executive Robert L. Tillman. On a conference call with analysts and reporters, he blamed weaker economic conditions for slower demand in the quarter.

Lowe's, Home Depot Inc.'s biggest rival, said sales at stores in business at least a year will fall 2 percent to 4 percent in its fiscal fourth quarter. The company had said same-store sales would rise 1 percent to 3 percent.

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