NEW YORK -- People bought more air conditioners and grills at Lowe's Cos. in early summer, boosting second-quarter net income 10 percent, but overall spending was hurt by hot weather and the weak economy, the home-improvement retailer said Monday.
The No. 2 home improvement retailer joined a long line of companies in sounding a cautious note about consumer spending and cut its yearly revenue guidance as worries grow about a stalling economy.
Lowe's CEO Robert Niblock said Monday that Americans are responding to programs such as the federal cash-for-appliances rebates and sales but said 2010 is a "bouncing along the bottom" year.
Spending remained marginally positive overall. Revenue from stores open at least a year rose 1.6 percent.
Revenue at stores open at least a year is a key indicator of a retailer's performance because it excludes growth at stores that open or close during the year.
But Americans remain cautious, spending on carpets or kitchen cabinets, but not as much as they would have a few years ago, said Larry Stone, chief operating officer.