Lowe’s Companies, Inc., the world’s second largest home improvement retailer, today reported net earnings of $499 million for the quarter ended November 1, 2013, a 26.0 percent increase over the same period a year ago.  Diluted earnings per share increased 34.3 percent to $0.47 from $0.35 in the third quarter of 2012.  For the nine months ended November 1, 2013, net earnings increased 18.6 percent from the same period a year ago to $1.98 billion, and diluted earnings per share increased 29.6 percent to $1.84.

Sales for the quarter increased 7.3 percent to $13.0 billion from $12.1 billion in the third quarter of 2012, and comparable sales for the quarter increased 6.2 percent.  For the nine month period, sales were $41.8 billion, a 5.8 percent increase over the same period a year ago, and comparable sales increased 5.1 percent.

“I am pleased we delivered another solid quarter driven by balanced performance,” commented Robert A. Niblock, Lowe’s chairman, president and CEO.  “This balanced performance resulted from our improved collaboration and execution within a strengthening home improvement market, combined with our employees’ hard work and continued dedication to serving customers.

“The home improvement industry is poised for persisting growth in the fourth quarter and further acceleration in 2014,” Niblock added.

Delivering on the commitment to return excess cash to shareholders, the company repurchased $761 million of stock and paid$191 million in dividends in the quarter.  For the nine month period, the company repurchased $2.8 billion and paid $543 million in dividends.

As of November 1, 2013, Lowe’s operated 1,831 home improvement and hardware stores in the United States, Canada and Mexico, representing 200.1 million square feet of retail selling space.

Lowe’s Business Outlook

Based on its year-to-date performance and outlook for the balance of the year, the company raised its fiscal year 2013 guidance.

Fiscal Year 2013 (comparisons to fiscal year 2012; based on U.S. GAAP unless otherwise noted)

• Total sales are expected to increase approximately 6 percent.
• Comparable sales are expected to increase approximately 5 percent.
• The company expects to open 9 stores in fiscal year 2013.
• Earnings before interest and taxes as a percentage of sales (operating margin) are expected to increase approximately 75 basis points.
• The effective income tax rate is expected to be approximately 37.8%.
• Diluted earnings per share of approximately $2.15 are expected for the fiscal year ending January 31, 2014 (versus $2.10on August 21, 2013).