Lowe’s Earnings Rise; Toys R Us’ Loss Is Less

Lowe’s Cos., the second-largest U.S. home-improvement chain, said quarterly earnings rose 24%. Toys R Us Inc. had a narrower loss as the companies sold more-profitable goods.

Net income for Lowe’s in its fiscal third quarter ended Nov. 2 rose to $250.5 million, or 32 cents a share, from $202.3 million, or 26 cents, a year earlier. Toys R Us, the biggest U.S. toy-store chain, said its loss in its fiscal third quarter ended Nov. 3 narrowed to $44 million, or 22 cents, from $65 million, or 32 cents.

Both chains had wider profit margins as Lowe’s sold products such as appliances and Toys R Us sold exclusive items, including Animal Alley plush toys. Those sales helped the companies post results that were in line with or better than estimates. Profit at many other retailers has fallen or missed forecasts as the U.S. economy slowed and customers shopped less after Sept. 11.

“Most of the rest of retailing is really hurting,” said Marty Bukoll, an analyst with Northern Trust Corp., which holds Lowe’s and Toys R Us shares.

The companies may outperform rivals this quarter, as people shop more for their homes and kids while paring spending elsewhere, analysts said.

Lowe’s said fourth-quarter profit will be 22 to 24 cents a share. The average analyst forecast was 22 cents, according to Thomson Financial/First Call. Toys R Us said it is “well-positioned to deliver positive results.”

The shares of Wilkesboro, N.C.-based Lowe’s rose $2.75, or 6.8%, to $43.10 on the New York Stock Exchange. Paramus, N.J.-based Toys R Us rose $1.02, or 4.5%, to $23.62, also on the NYSE.

Lowe’s, which trails Home Depot Inc. by sales, was forecast to earn 31 cents in the third quarter, according to First Call. Toys R Us was expected to have a loss of 22 cents.