Sales up 12.2 per cent for the quarter
US home improvement retailer Lowes cut its full-year earnings target yesterday, despite revealing second-quarter earnings up 11.4 per cent on last year.

The world's second-largest home improvement retailer posted earnings of US$935 million (£494.6 million) for the quarter to August 4.

Sales for the quarter increased 12.2 per cent to US$13.4 billion (£7.09 billion), from US$11.9 billion (£6.29 billion) for the same period last year. Like-for-like sales were up 3.3 per cent for the quarter and 4.4 per cent over the half-year. However, the group cut its forecast for full-year sales growth from 13 per cent to 11 per cent.

Chairman and chief executive Robert Niblock said: 'We remain focused on strategies to grow our business. However, near-term pressures on the US consumer have led to a more cautious outlook for the balance of the year.'

Niblock added that higher energy costs, rising interest rates and geo-political uncertainty were 'weighing heavily on the consumer'.

Lowes operates 1,281 stores in 49 US states. It expects to open a further 48 outlets in the coming quarter, increasing its selling space by 13 per cent.

Home Depot, the leading US DIY retailer and world number one, said earnings would be at the low end of its guidance last week, as it reported second quarter like-for-like sales down 0.2 per cent. Home Depot operates 2,079 stores in the US, Canada and Mexico.