Mooresville, N.C. -- Lowe's Cos. reported Monday that net income for the quarter ended Oct. 28 dropped 44% as store-closing charges undercut a slight uptick in quarterly sales.
The home-improvement retailer reported net earnings of $225 million, compared with $404 million in the year-ago period. Charges related to store closures amounted to a pre-tax earnings reduction of $336 million.
Sales increased 2.3% to $11.9 billion, up from $11.6 billion a year earlier. Same-store sales edged up 0.7%, reversing declines in two prior quarters.
"Our performance is not at the level we expect relative to the market," said Robert A. Niblock, president and CEO. "We are making the changes necessary to right size the organization, improve speed to market and enhance the shopping experience.”
In an effort to improve profitability, Lowe's is shutting 20 stores, slowing future openings and restructuring its store and merchandising organizations.