Lowe's sales beat on demand for appliances, outdoor equipment
VIRGINIA: Lowe's Cos Inc (LOW.N), the No.2 U.S. home improvement chain, reported stronger-than-expected growth in its quarterly same-store sales, helped by higher demand for items such as appliances and outdoor power equipment. The company's same-store sales rose 4.3 percent in the second quarter, stronger than the 3.9 percent expected by analysts polled by research firm Consensus Metrix. Lowe's sells items such as refrigerators, dishwashers and washing machines in its kitchens and appliances category, its biggest by sales, accounting for 14 percent of total sales. The company's outdoor power equipment category, which includes chainsaws, lawn mowers and branch trimmers, contributes about 4 percent to total sales.
Larger rival Home Depot Inc (HD.N) also reported a stronger-than-expected rise in quarterly same-store sales on Tuesday, helped by increased home remodeling activity in the United States and a recovery in the housing market. U.S. housing starts rose to a near eight-year high in July as builders ramped up construction of single-family homes, while U.S. homebuilder sentiment rose in August to its highest level in almost a decade.