Lowe's Profit Up 15 Pct., Tops Estimates ATLANTA (Reuters) - Lowe's Cos. (LOW.N: Quote , Profile , Research ) , the No. 2 home improvement retailer, on Monday reported a 15 percent rise in third-quarter profit, topping estimates, aided by its expansion into large U.S. markets. The company also reported higher gross margins, strong sales of outdoor power equipment, countertops and cabinets, and demand related to the hurricanes in the U.S. Southeast. Net income rose to $522 million, or 66 cents a diluted share, from $452 million, or 56 cents a diluted share, a year earlier. Analysts' average earnings forecast was 65 cents a share, according to Reuters Estimates. Sales rose 16 percent to $9.1 billion. Sales at stores open at least a year rose 5.2 percent, compared with a rise of 12 percent a year earlier. The same-store sales gain was better than many analysts had expected. "One of the things that's driving (same-store sales) is the phenomena of the more affluent segment of the population trading up in their purchases," said Donald Trott, an analyst with Jefferies & Co. who owns Lowe's stock. Lowe's, based in Mooresville, North Carolina, has delivered solid earnings as it expands to New York and other big U.S. cities where industry leader Home Depot Inc. (HD.N: Quote , Profile , Research ) has an established presence. But Lowe's now faces tougher earnings and sales comparisons with a year earlier and stiff competition in a number of product categories, particularly appliances. Lehman Brothers analyst Alan Rifkin said rising interest rates could limit earnings upside in 2005. Both Lowe's and Home Depot have benefited over the past few years as low rates have spurred home purchases and mortgage refinancings. Lowe's said it opened 35 new stores during the third quarter, bringing its total to 1,031 in 45 states. The retailer forecast fourth-quarter profit of 58 cents to 60 cents a share, and earnings of $2.69 to $2.71 a share for the full year, including the impact of an accounting change. Analysts' average estimates are 60 cents for the fourth quarter and $2.72 for the year, according to Reuters Estimates. Quelle "Lowe's Profit Up 15 Pct., Tops Estimates" : reuters.com Main page for "Lowe's Profit Up 15 Pct., Tops Estimates"