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Lowe's sales lumbering
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October 6, 2000: 11:01 a.m. ET
Home improvement retailer cites falling prices, says earnings on track
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NEW YORK (CNNfn) - Lowe's Corp., the No. 2 U.S. home improvement retailer, said Friday it expects third-quarter sales at stores open at least a year to come in below its own previous targets but added it was still on target to meet Wall Street earnings forecasts.
Wilkesboro, N.C.-based Lowe's (LOW: Research, Estimates) said falling prices for lumber and building materials, along with the costs of converting the recently acquired Eagle Hardware chain to its format, would cause third-quarter "comparable store" sales - those at stores open at least a year -- to rise less than its own prior forecasts of about 5 percent.
 Lowe's stock, which has fallen in recent weeks, tumbled further Friday, falling $1.88 to $40.25 after falling as low as $38, a new 52-week low.
Despite the sales weakness, it said it was comfortable with analysts' earnings estimates of 53 cents a share for the third quarter thanks chiefly to cost controls and gross margin expansion.
Chairman Robert Tillman said Lowe's had completed a remerchandising plan for the former Eagle Hardware stores, now operating as Lowe's Home Improvement Warehouse, and expects sales to strengthen.
"Having completed this important milestone in integrating the former Eagle stores into the Lowe's chain, we are encouraged by the progress that we have seen since the Labor Day transition and anticipate continuing improvement" the rest of the year, he said in a statement. 
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Lowe's
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