Lowe's goes high with growth in 2015

Lowe's rode the same wave of recovery in the housing market as its rival Home Depot in the fourth quarter, topping its own expectations with substantial gains.

"I am pleased that we delivered another solid quarter, driving increased traffic through competitive offers and creating strong value for customers," said Robert Niblock, Lowe's chairman, president and CEO. "We capitalized on increased demand for exterior products as a result of warmer weather, while at the same time helped customers tackle interior projects, allowing us to deliver positive comps in all product categories."

The retailer reported net sales of $13.2 billion in the fourth quarter ended Jan. 29, up 5.6% from the previous period in 2014.

Additionally, Lowe's had net earnings of $11 million for the quarter, which includes a non-cash impairment charge of $530 million associated with its exit from its joint venture in Australia. Without the charge, its net earnings would have been $541 million, a 20.2% year-over-year increase.

For the full fiscal year ended Jan. 29, sales were $59.1 billion, up 5.1% from the previous year.

Net earnings came in at $2.5 billion with the impairment charge factored in. Excluding that impact, net earnings would have been $3.1 billion, a 14.0% increase over 2014.

"I would like to thank our employees for the incredible contributions they make every day through their hard work and commitment to delivering outstanding customer service," Niblock added. "In 2016, we will continue to leverage the favorable macroeconomic backdrop for home improvement, providing customers with complete solutions for their home improvement projects."

Lowe's announced earlier this year that it was exiting its one-third stake in its joint venture with Woolworths Limited in Australia, which operates Masters Home Improvement stores and Home Timber and Hardware Group's retail stores and wholesale distribution in Australia.

Additionally, the company made good on its promise to return excess cash to shareholders, repurchasing $562 million of stock under its share repurchase program and paying $257 million in dividends in the fourth quarter.

The company also offered its outlook for the fiscal 2016 period, with total sales expected to rise about 6%, and an additional 45 locations slated to be built.

As of Jan. 29, Lowe's operated 1,857 home improvement and hardware stores in the United States, Canada and Mexico.