Lowe's Expects to Meet Lowered Guidance

Author:: David A. Gaffen
Publish date:: Feb 9, 2001 10:23 AM EST

(Updated from 8:14 a.m. EST)

Home improvement retailer

Lowe's

said it will meet lowered quarterly earnings estimates of 37 cents a share when it reports earnings on Feb. 26.

The company said price cuts during the holiday season hurt its earnings. Because of a decline in demand at its stores, Lowe's had previously reduced its earnings outlook to the current 37 cents a share from an earlier range of 40 cents to 42 cents. The company said it will meet estimates of $2.11 for its fiscal year 2001, which ended Jan. 31.

Lowe's said sales will come in close to previous guidance. It is anticipating a 2% to 4% decline for the quarter due to promotional discounts within the industry and a decline in demand in its stores. Lowe's' main competitor,

Home Depot

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, has been beset with similar problems and has also warned of quarterly earnings shortfalls.

Both companies' stocks are well off their 52-week highs.

Goldman Sachs

analyst Matthew J. Fassler upgraded Lowe's this morning and added the company to the "U.S. Recommended for Purchase List" from a previous market outperformer rating.