Lowe's Conference Call Highlights: Optimism Over Housing Market Continues

Following

Lowe'sL

third quarter results which were reported on Wednesday morning, the company hosted a conference call to discuss its quarter and future outlook.

Third Quarter In Review

As optimism over the housing market continued in the quarter, the company notes that home owner desire to invest in their homes has been the highest since 2006.
All 12-product companies generated positive comps.
Comp sales were driven by an increase in comp average ticket and an increase in comp transactions.
Fashion fixtures, millwork produced above-average comps.
No net inflation impacts were noticed.
Professional unit comps grew at a higher pace than the company average.
Big ticket purchases above $500 rose by nine percent.
Gross margin declines of nine percent in the quarter were driven by promotions.

Fourth Quarter Outlook

Lowe's is adding more store space for holiday decorations.
The ongoing port disturbance in the west coast won't impact holiday inventory
Impact on promotions will be the same as it was in the third quarter, largely focused around appliances.
Management will share a long-term vision for the business at an investor and analyst conference on December 11.

Full Year Fiscal 2014 Outlook

Total share repurchases are estimated to be $3.7 billion, $300 million more than previously projected.
Higher level of share buybacks attributed to lower capital expenditures.