Fourth-quarter earnings increased for Lowe’s, following the company’s announcement of additional layoffs at its corporate headquarters and two support facilities.
On March 1, the big-box retailer reported net earnings of $663 million, up by $11 million during the fourth quarter of 2015. Sales for the fourth quarter increased to $15.8 billion, or 19.2 percent higher than the same period in 2015. Comparable store sales increased 5.1 percent.
For the fiscal year that ended Feb. 3, net earnings were $3.1 billion compared to net earnings of $2.5 billion in fiscal 2015. Sales for the year were $65 billion, a 10.1 percent increase year over year. Comparable sales for the U.S. business increased 5.1 percent for the fourth quarter and 4.1 percent for the fiscal year.
“We achieved strong fourth quarter results, delivering comparable sales growth and adjusted earnings per share above our expectations,” says Robert A. Niblock, Lowe’s chairman, president and CEO. “We leveraged our omnichannel platform, customer experience design capabilities, and project expertise to drive strong holiday performance and capitalize on broad-based project demand throughout the quarter.”
After Lowe’s announced its financial results, Niblock spoke with The Charlotte Observer about the company’s the recent layoffs. Lowe’s is headquartered in Mooreseville, North Carolina, which is north of Charlotte.
Lowe’s recently confirmed 3,000 corporate and store-level layoffs within the past month. Executives have said the layoffs help “eliminate layers of control, making the company more nimble and better able to respond to changing consumer habits,” according to The Charlotte Observer.
“Even though it’s difficult to see the impact on co-workers, I think people understand that this will keep us a strong, viable company moving forward,” Niblock tells The Charlotte Observer. “As the world continues to evolve, we’ll continue to challenge ourselves. It’s something we do every year.”
As of Feb. 3, Lowe’s operated 2,129 home improvement and hardware stores in the U.S., Canada and Mexico.