Lowe’s net earnings took a hit in the third quarter of 2016, failing to perform as well as leadership projected.
“Our third-quarter operating results were below our expectations due to slower sales in the first two months of the quarter,” says Robert A. Niblock, chairman, president and CEO. “While we expected moderation in the second half of the year, traffic slowed more than we anticipated in August and September before improving in October, which put pressure on our profitability in the quarter.”
The company released its third-quarter financials Nov. 16, and net earnings for the quarter came in at $379 million. Net earnings would have been $775 million. However, added expenses, such as the cost of closing its Australian retail venture, had an impact. These expenses shaved $462 million off the total, the company reports.
That $379 million is in sharp contrast to Lowe’s earnings of $1.2 billion in the second quarter.
The company operates 2,119 home improvement and hardware stores in the U.S., Canada and Mexico.