Home improvement chain Lowe's Cos. reported that profit dropped 10% in the second quarter because of weak sales and competition from rivals.
For the three months ended Aug. 3, the retailer reported net income of $747 million, or 64 cents a share, compared with $830 million, or flat earnings per share, in the same period a year ago.
Sales sank 2%, to $14.2 billion from $14.5 billion.
"Our results fell short of our overall expectations," said Lowe's Chief Executive Robert A. Niblock in a Monday statement. "We fully understand that we must improve our level of execution."
The North Carolina company said that a staff reduction at its headquarters was responsible for eating away $15 million in profit.