Home improvement chain Lowe’s reported a lower-than-expected quarterly profit, hurt by higher costs and taxes, and the No2 US home improvement chain posted its slowest growth in same-store sales in five quarters.

Lowe’s selling and general expenses rose 2.6 per cent in the second quarter and tax rate increased to 38.1 per cent from 37.3 per cent.

Lowe’s said sales of timber and building materials, paint, and lawn and garden equipment were below average. Demand was low also for exterior improvement items due to heavy rain in parts of the US, analysts said.

However, Lowe’s net sales rose 4.5 per cent to $17.35 billion, helped by higher demand for items such as appliances and outdoor power equipment.

Larger rival Home Depot Inc reported a stronger-than-expected rise in quarterly same-store sales on Tuesday, helped by increased home remodeling activity in the United States and a recovery in the housing market.

– (Reuters)