Lowe’s tops estimates in Q2, to close Orchard Supply operations

Lowe’s Cos. LOW, +0.78% on Wednesday reported second-quarter earnings that topped analysts expectations, and said it would close its Orchard Supply Hardware division. On an adjusted basis, the home-improvement retailer reported earnings of $2.07 a share, up 31.8% from the year-ago period. Sales rose 7.1% to $20.9 billion, while same-store sales were up 5.2%. Analysts were looking for earnings of $2.02 a share and revenue of $20.78 billion. In a news release, Lowe’s said it was exiting its Orchard Supply Hardware division, with all 99 of the stores, along with a distribution facility, expected to close by the end of the fiscal year. The company sees pretax costs of $390 to $475 million as a result of the closures. For the full year, Lowe’s sees sales rising 4.5% while same-store sales increase 3%. It expects earnings between $4.50 and $4.60 a share. Shares of Lowe’s are up 7.3% thus far this year, compared with the 5.7% rise of peer retailer Home Depot Inc. HD, +1.16% and the 7.1% rise of the S&P 500 SPX, +0.21%

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