Lowe’s tops estimates in Q2, to close Orchard Supply operations

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Lowe’s Cos.

LOW, +0.78%

on Wednesday reported second-quarter earnings that topped analysts expectations, and stated it might close its Orchard Supply Hardware division. On an adjusted foundation, the home-improvement retailer reported earnings of $2.07 a share, up 31.eight% from the year-ago interval. Sales rose 7.1% to $20.9 billion, whereas same-store gross sales have been up 5.2%. Analysts have been on the lookout for earnings of $2.02 a share and income of $20.78 billion. In a information launch, Lowe’s stated it was exiting its Orchard Supply Hardware division, with all 99 of the shops, together with a distribution facility, anticipated to close by the top of the fiscal yr. The firm sees pretax prices of $390 to $475 million because of the closures. For the total yr, Lowe’s sees gross sales rising four.5% whereas same-store gross sales enhance three%. It expects earnings between $four.50 and $four.60 a share. Shares of Lowe’s are up 7.three% to this point this yr, in contrast with the 5.7% rise of peer retailer Home Depot Inc.

HD, +1.16%

and the 7.1% rise of the S&P 500

SPX, +0.21%

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