Weather, Economy Batter Lowe's Results

MOORSEVILLE, NC-Unseasonably warm weather and problems in the housing market and economy in general negatively impacted Lowe’s Cos. third quarter, management said during a conference call. For the period, which ended Nov. 2, same-store sales dropped 4.3% year over year, and net earnings fell 10.2%, to $643 million.

The company was hit by declining housing markets in California and Florida, where it experienced the bulk of its poor sales, though effects were felt nationwide. A drought in some states hurt sales in the chain’s nursery department.

Robert Niblock, the retailer’s chairman and CEO, called the challenges in the home-improvement sector “greater than anticipated.” “They are likely to last longer than we expected,” he said, venturing that poor economic conditions could continue into next year.