Lowe's Closes Seven Stores

Although Lowe's Co. second quarter sales rose 1.3% to $14.54 billion, it was lower than analysts' estimate of $14.75 billion and net earnings dropped 0.2% at $830 million. The company, which opened two stores during the quarter and rebuilt one destroyed by a tornado, announced the closing of seven stores nationwide. The company blamed consumer reluctance to perform home improvement projects on the anemic economy and declining home prices. Sales at Lowe's stores open at least a year fell 0.3%. The company expects third quarter sales to rise 2% but earnings to decrease 10 to 20 basis points. For the year, the company expects to open approximately 25 stores in 2011 reflecting average square footage growth of approximately 1.3%.