MOORESVILLE, NC– Home improvement retailers are reaping the benefits of a continued housing market rebound. On the heels of Home Depot's recent announcement of a 17% jump in net earnings, Lowe’s Cos. reported its profits soared 26% for the second quarter, with sales reaching $15.7 billion, a 10.3% increase.
There was significant demand for all products, including lumber supplies, as custom woodworkers and contractors saw increased business.
“Home improvement demand was strong during the quarter, and we capitalized on itn," said Robert A. Niblock, Lowe’s CEO. “We drove a healthy balance of ticket and transaction growth, and delivered solid performance across all product categories.”
Lowe's also announced its acquisition of the assets of Orchard Supply Hardware, which filed for bankruptcy in June, has been approved by the U.S. Bankruptcy Court for the District of Delaware.
Lowe’s will acquire 72 Orchard home improvement stores for $205 million in cash, plus the assumption of payables owed to nearly all of Orchard’s supplier partners. Lowe’s expects to close the transaction by the end of August.