Lowe’s Profit Falls 5%; Shares Rise on Forecast

Lowe’s Cos., the No. 2 U.S. home improvement retailer, said earnings declined in its fourth quarter due to discounts, but predicted a strong increase in profit for the year ahead. The optimistic forecast pushed up shares of Lowe’s and its rival, Home Depot Inc. Lowe’s shares jumped $4.33, or 8%, to close at $58.91, while Home Depot shares rose $3.74, or 9%, to close at $43.75. Both trade on the NYSE. Lowe’s said earnings in its fourth quarter ended Feb. 2 declined 5% to $140.8 million, or 37 cents a share, meeting reduced expectations. Sales rose 20% to $4.5 billion, but sales at stores open at least a year declined 3%.