Exhibit 99.1

 

May 18, 2009

For 7:00 am EDT Release

Contacts:	Shareholders’/Analysts’ Inquiries:	Media Inquiries:
	Paul Taaffe	Chris Ahearn
	704-758-2033	704-758-2304

LOWE’S REPORTS FIRST QUARTER SALES AND EARNINGS RESULTS

MOORESVILLE, N.C.  – Lowe’s Companies, Inc. (NYSE: LOW), the world’s second-largest home improvement retailer, today reported net earnings of $476 million for the quarter ended May 1, 2009, a 21.6 percent decline versus the same period a year ago.   Diluted earnings per share declined 22.0 percent to $0.32 from $0.41 in the first quarter of 2008.

Sales for the quarter declined 1.5 percent to $11.8 billion, down from $12.0 billion in the first quarter of 2008.  Comparable store sales for the first quarter declined 6.6 percent.

“Despite the difficult external environment, Lowe’s strong commitment to customer service and a compelling product offering led to continued market share gains in the first quarter and helped deliver sales within our guidance range,” commented Robert A. Niblock, Lowe’s chairman and CEO.  “In addition, solid gross margin growth combined with appropriate expense management allowed us to deliver earnings per share above our guidance for the quarter. 

“The economic pressures on consumers remain intense, and bigger ticket projects continue to be postponed as wary home improvement consumers watch the economic climate and housing market dynamics very closely,” Niblock added. “But, as spring arrived, we saw relative strength in smaller, outdoor projects. 

“In recent weeks we have seen consumer confidence improve, housing turnover show signs of a bottom in certain markets, and home prices slow their decline,” Niblock continued.  “These are all positive signs for the stabilization and ultimate recovery of home improvement industry sales, but since many of these variables remain at or near historic lows, we will continue to plan conservatively and manage expenses appropriately.  Lowe’s remains focused on positioning the company for the future while maximizing opportunities presented today.”

During the quarter, Lowe’s opened 21 new stores.  As of May 1, 2009, Lowe’s operated 1,670 stores in the United States and Canada representing 188.8 million square feet of retail selling space, a 7.0 percent increase over last year.

A conference call to discuss first quarter 2009 operating results is scheduled for today (Monday, May 18) at 9:00 am EDT.  Please dial 888-817-4020 (international callers dial 706-679-8762) to participate.  A webcast of the call will take place simultaneously and can be accessed by visiting Lowe’s website at www.Lowes.com/investor and clicking on Lowe’s First Quarter 2009 Earnings Conference Call Webcast.  A replay of the call will be archived on Lowes.com until August 16, 2009.

 Lowe’s Business Outlook

Second Quarter 2009 (comparisons to second quarter 2008)

·   The company expects to open approximately 18 new stores reflecting square footage growth of approximately 7 percent

·   Total sales are expected to range from a decline of 2 percent to an increase of 1 percent

·   The company expects comparable store sales to decline 4 to 8 percent

·   Earnings before interest and taxes as a percentage of sales (operating margin) is expected to decline approximately 160 basis points driven by payroll, fixed cost and depreciation deleverage

·   Store opening costs are expected to be approximately $13 million

·   Diluted earnings per share of $0.51 to $0.55 are expected

·   Lowe’s second quarter ends on July 31, 2009 with operating results to be publicly released on Monday, August 17, 2009

Fiscal Year 2009 (comparisons to fiscal year 2008)

·   The company expects to open 60 to 70 stores in 2009 reflecting total square footage growth of approximately 4 percent

·   Total sales are expected to range from a decline of 2 percent to an increase of 1 percent

·   The company expects comparable store sales to decline 4 to 8 percent

·   Earnings before interest and taxes as a percentage of sales (operating margin) is expected to decline 130 to 140 basis points

·   Store opening costs are expected to be approximately $50 million

·   Diluted earnings per share of $1.13 to $1.25 are expected for the fiscal year ending January 29, 2010

 Disclosure Regarding Forward-Looking Statements

This news release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”).  Statements of the company’s expectations for sales growth, comparable store sales, earnings and performance, capital expenditures, store openings, the housing market, the home improvement industry, demand for services, and any statement of an assumption underlying any of the foregoing, constitute “forward-looking statements” under the Act.  Although the company believes that the expectations, opinions, projections, and comments reflected in its forward-looking statements are reasonable, it can give no assurance that such statements will prove to be correct. A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results expressed or implied by our forward-looking statements including, but not limited to, changes in general economic conditions, such as rising unemployment, interest rate and currency fluctuations, higher fuel and other energy costs, slower growth in personal income, changes in consumer spending, the availability and increasing regulation of consumer credit and mortgage financing, changes in the rate of housing turnover, inflation or deflation of commodity prices and other factors which can negatively affect our customers, as well as our ability to:  (i) respond to adverse trends in the housing industry and the level of repairs, remodeling, and additions to existing homes, as well as general reduction in commercial building activity; (ii) secure, develop, and otherwise implement new technologies and processes designed to enhance our efficiency and competitiveness; (iii) attract, train, and retain highly-qualified associates; (iv) locate, secure, and successfully develop new sites for store development particularly in major metropolitan markets; (v) respond to fluctuations in the prices and availability of services, supplies, and products; (vi) respond to the growth and impact of competition; (vii) address legal and regulatory developments; and (viii) respond to unanticipated weather conditions that could adversely affect sales.  For more information about these and other risks and uncertainties that we are exposed to, you should read the “Risk Factors” included in our Annual Report on Form 10-K to the United States Securities and Exchange Commission and the description of material changes, if any, in those “Risk Factors”  included in our Quarterly Reports on Form 10-Q.

The forward-looking statements contained in this news release speak only as of the date of this release and the company does not assume any obligation to update any such statements.

With fiscal year 2008 sales of $48.2 billion, Lowe’s Companies, Inc. is a FORTUNE® 50 company that serves approximately 14 million customers a week at more than 1,650 home improvement stores in the United States and Canada. Founded in 1946 and based in Mooresville, N.C., Lowe’s is the second-largest home improvement retailer in the world. For more information, visit Lowes.com.

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Lowe's Companies, Inc.
Consolidated Statements of Current and Retained Earnings (Unaudited)
In Millions, Except Per Share Data
	Three Months Ended
	May 1, 2009					May 2, 2008
Current Earnings	Amount			Percent		Amount			Percent
Net sales	$	11,832			100.00	$	12,009			100.00
Cost of sales		7,636			64.54		7,843			65.31
Gross margin		4,196			35.46		4,166			34.69
Expenses:
Selling, general and administrative		2,944			24.88		2,725			22.69
Store opening costs		13			0.11		18			0.15
Depreciation		401			3.39		375			3.12
Interest - net		78			0.66		76			0.63
Total expenses		3,436			29.04		3,194			26.59
Pre-tax earnings		760			6.42		972			8.10
Income tax provision		284			2.40		365			3.04
Net earnings	$	476			4.02	$	607			5.06
Weighted average common shares outstanding - basic		1,462					1,454
Basic earnings per common share	$	0.32				$	0.42
Weighted average common shares outstanding - diluted		1,464					1,477
Diluted earnings per common share	$	0.32				$	0.41
Cash dividends per share	$	0.085				$	0.080
Retained Earnings
Balance at beginning of period	$	17,049				$	15,345
Net earnings		476					607
Cash dividends		(126	)				(117	)
Balance at end of period	$	17,399				$	15,835

Lowe's Companies, Inc.
Consolidated Balance Sheets
In Millions, Except Par Value Data
		(Unaudited)		(Unaudited)
		May 1, 2009		May 2, 2008		January 30, 2009
Assets
Current assets:
Cash and cash equivalents		$	682	$	913	$	245
Short-term investments			460		295		416
Merchandise inventory - net			9,013		8,438		8,209
Deferred income taxes - net			183		259		166
Other current assets			264		253		215
Total current assets			10,602		10,158		9,251
Property, less accumulated depreciation			22,715		21,641		22,722
Long-term investments			448		537		253
Other assets			444		318		460
Total assets		$	34,209	$	32,654	$	32,686
Liabilities and shareholders' equity
Current liabilities:
Short-term borrowings		$	-	$	147	$	987
Current maturities of long-term debt			52		34		34
Accounts payable			5,843		5,345		4,109
Accrued compensation and employee benefits			535		481		434
Self-insurance liabilities			750		685		751
Deferred revenue			741		893		674
Other current liabilities			1,283		1,388		1,033
Total current liabilities			9,204		8,973		8,022
Long-term debt, excluding current maturities			5,023		5,576		5,039
Deferred income taxes - net			594		699		660
Other liabilities			951		787		910
Total liabilities			15,772		16,035		14,631
Shareholders' equity:
Preferred stock - $5 par value, none issued			-		-		-
Common stock - $.50 par value;
Shares issued and outstanding
May 1, 2009	1,474
May 2, 2008	1,462
January 30, 2009	1,470		737		731		735
Capital in excess of par value			296		48		277
Retained earnings			17,399		15,835		17,049
Accumulated other comprehensive income (loss)			5		5		(6	)
Total shareholders' equity			18,437		16,619		18,055
Total liabilities and shareholders' equity		$	34,209	$	32,654	$	32,686

Lowe's Companies, Inc.
Consolidated Statements of Cash Flows (Unaudited)
In Millions
	Three Months Ended
	May 1, 2009			May 2, 2008
Cash flows from operating activities:
Net earnings	$	476		$	607
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		434			404
Deferred income taxes		(83	)		17
Loss on property and other assets		9			21
Transaction loss from exchange rate changes		1			-
Share-based payment expense		24			28
Changes in operating assets and liabilities:
Merchandise inventory - net		(801	)		(828	)
Other operating assets		(1	)		42
Accounts payable		1,732			1,633
Other operating liabilities		554			614
Net cash provided by operating activities		2,345			2,538
Cash flows from investing activities:
Purchases of short-term investments		(68	)		(64	)
Proceeds from sale/maturity of short-term investments		122			86
Purchases of long-term investments		(302	)		(325	)
Proceeds from sale/maturity of long-term investments		6			224
Decrease in other long-term assets		15			-
Property acquired		(572	)		(805	)
Proceeds from sale of property and other long-term assets		11			4
Net cash used in investing activities		(788	)		(880	)
Cash flows from financing activities:
Net decrease in short-term borrowings		(986	)		(915	)
Proceeds from issuance of long-term debt		-			8
Repayment of long-term debt		(8	)		(13	)
Proceeds from issuance of common stock from stock options exercised		1			10
Cash dividend payments		(126	)		(117	)
Excess tax benefits of share-based payments		-			1
Net cash used in financing activities		(1,119	)		(1,026	)
Effect of exchange rate changes on cash		(1	)		-
Net increase in cash and cash equivalents		437			632
Cash and cash equivalents, beginning of period		245			281
Cash and cash equivalents, end of period	$	682		$	913