Lowe's posts 25% earnings growth

Mooresville, North Carolina-based Lowe's pointed to a favorable economy and improved productivity while reporting third-quarter results that beat expectations.

The company reported net earnings of $736 million for the quarter ended Oct. 30, up 25.8% from the same period a year ago. Sales for the quarter were up 5.0% to $14.4 billion.

"This is an exciting time for Lowe's as we continue to execute our strategic priorities alongside a favorable macroeconomic back-drop," said Robert A. Niblock, Lowe's president and CEO. "I am pleased that we delivered another solid quarter."

Comparable store sales increased 4.6% -- up 5.0% for the U.S. home improvement business. These gains were driven by transactions and average ticket.

Niblock gave special mention to South Carolina store employees who helped residents through a bout of historic flooding.

At the end of the quarter, Lowe's operated 1,849 stores.

For the full year, Lowe's expects sales to increase in the range of 4.5% to 5%. Comps are expected to increase 4% to 4.5%.

Lowe's earnings report followed by one day that of rival Home Depot, which also posted strong sales and earnings growth.