(Updated from 8:14 a.m. EST)
Home improvement retailer
Lowe's
(LOW) - Get Report
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
(HD) - Get Report
, 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.
