Lowe's Companies (LOW) 8-K Lowe’s Reports Record Third Quarter Earnings

Exhibit 99.1

November 20, 2006

For 7:00 am EST Release

Contacts:	Shareholders’/Analysts’ Inquiries:	Media Inquiries:
	Robbin Moore-Randolph	Chris Ahearn
	704-758-3579	704-758-2304

LOWE’S REPORTS RECORD THIRD QUARTER EARNINGS

-- Third Quarter Diluted Earnings Per Share Increased 15 Percent --

MOORESVILLE, N.C. - Lowe’s Companies, Inc. (NYSE: LOW), the world’s second largest home improvement retailer, today reported net earnings of $716 million for the quarter ended November 3, 2006, a 10.8 percent increase over the same period a year ago. Diluted earnings per share increased 15.0 percent to $0.46 from $0.40 in the third quarter of 2005. For the nine months ended November 3, 2006, net earnings grew 20.3 percent to $2.49 billion while diluted earnings per share increased 23.3 percent to $1.59.

Sales for the quarter increased 5.8 percent to $11.2 billion, up from $10.6 billion in the third quarter of 2005. For the nine months ended November 3, 2006, sales increased 12.6 percent to $36.5 billion. Year-to-date total sales results were impacted by the calendar shift described in the business outlook section of this release. Comparable store sales for the third quarter declined 4.0 percent and increased 1.7 percent in the first nine months of 2006.

“The combined effects of a slowing housing market in parts of the U.S., significant deflation in certain commodity categories, and a difficult comparison to last year’s hurricane recovery and rebuilding efforts have created a challenging sales environment for home improvement,” commented Robert A. Niblock, Lowe’s chairman, president and CEO.  “Despite these challenges, we continue to gain market share in key product categories and achieved industry-leading share gains across the total store according to third-party estimates. We continue to see solid performance from our new stores and remain focused on delivering the superior service customers expect from Lowe’s.

“We believe many external headwinds will exist through the balance of the year and the first half of fiscal 2007, but as we look to the future, we are confident that solid longer-term drivers of our industry remain,” Niblock added.  “We will capitalize on this opportunity through ongoing new store expansion and continued investment in existing stores through product resets and re-merchandising projects, while actively managing controllable expenses. We remain focused on delivering the best stores, products and customer service in the industry to ensure Lowe’s is the first choice for home improvement.”

During the quarter, Lowe’s opened 49 new stores. As of November 3, 2006, Lowe’s operated 1,330 stores in 49 states representing 150.8 million square feet of retail selling space, a 13.4 percent increase over last year.

A conference call to discuss third quarter 2006 operating results is scheduled for today (Monday, November 20) at 9:00 a.m. EST. Please dial 888-817-4020 (international callers dial 706-679-3245) 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 Third Quarter 2006 Earnings Conference Call Webcast. A replay of the call will be archived on Lowes.com until February 25, 2007.

 Lowe's Business Outlook

Fiscal 2006 annual and fourth quarter comparisons will be negatively impacted by a 52 versus 53 week and 13 versus 14 week comparison, respectively.  In addition, our 2006 quarterly comparisons will be impacted by a shift in comparable weeks to 2005.  This week shift positively impacts the first quarter and is offset by negative impacts in the second and fourth quarters.  The week shift does not impact comparable store sales results. Our 2006 guidance contemplates these factors.

Fourth Quarter 2006 (comparisons to fourth quarter 2005 - a 14-week quarter)

·   The company expects to open 58 new stores reflecting square footage growth of approximately 12 percent

·   Total sales are expected to decline approximately 4 percent (13 weeks versus 14 weeks in 2005)

·   The company expects to report a comparable store sales decline of 4 to 6 percent

·   Operating margin (defined as gross margin less SG&A and depreciation) is expected to decline 150 to 160 basis points

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

·   Diluted earnings per share of $0.36 to $0.38 are expected

·   Lowe’s fourth quarter ends on February 2, 2007 with operating results to be publicly released on Monday, February 26, 2007

Fiscal Year 2006 - a 52-week Year (comparisons to fiscal year 2005 - a 53-week year)

·   The company expects to open 155 stores in 2006 reflecting total square footage growth of approximately 12 percent

·   Total sales are expected to increase approximately 9 percent (52 weeks versus 53 weeks in 2005)

·   The company expects comparable store sales to be approximately flat

·   Operating margin (defined as gross margin less SG&A and depreciation) is expected to increase 10 to 20 basis points

·   Store opening costs are expected to be approximately $146 million

·   Diluted earnings per share of $1.95 to $1.97 are expected for the fiscal year ending February 2, 2007

 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, 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 interest rate and currency fluctuations, fuel and other energy costs, slower growth in personal income and other factors which can negatively affect our customers as well as our ability to: (i) respond to decreases in the number of new housing starts 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 develop new sites for store development; (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 matters; and (viii) respond to unanticipated weather conditions.  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 descriptions of any material changes in those “Risk Factors” included in our subsequent 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 2005 sales of $43.2 billion, Lowe’s Companies, Inc. is a FORTUNE® 50 company that serves approximately 12 million customers a week at more than 1,325 home improvement stores in 49 states. Based in Mooresville, N.C., the 60-year old company 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										Nine Months Ended
	November 3, 2006					October 28, 2005					November 3, 2006					October 28, 2005
Current Earnings	Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent
Net sales	$	11,211			100.00	$	10,592			100.00	$	36,522			100.00	$	32,435			100.00
Cost of sales		7,346			65.53		7,012			66.20		24,011			65.74		21,430			66.07
Gross margin		3,865			34.47		3,580			33.80		12,511			34.26		11,005			33.93
Expenses:
Selling, general and administrative		2,320			20.70		2,212			20.88		7,404			20.27		6,711			20.69
Store opening costs		44			0.39		35			0.33		97			0.27		85			0.26
Depreciation		297			2.65		246			2.32		854			2.34		718			2.21
Interest		45			0.40		36			0.34		110			0.30		122			0.38
Total expenses		2,706			24.14		2,529			23.87		8,465			23.18		7,636			23.54
Pre-tax earnings		1,159			10.33		1,051			9.93		4,046			11.08		3,369			10.39
Income tax provision		443			3.94		405			3.83		1,554			4.26		1,297			4.00
Net earnings	$	716			6.39	$	646			6.10	$	2,492			6.82	$	2,072			6.39
Weighted average shares outstanding - basic		1,522					1,559					1,540					1,552
Basic earnings per share	$	0.47				$	0.41				$	1.62				$	1.34
Weighted average shares outstanding - diluted		1,551					1,608					1,571					1,608
Diluted earnings per share	$	0.46				$	0.40				$	1.59				$	1.29
Cash dividends per share	$	0.05				$	0.03				$	0.13				$	0.08
Retained Earnings
Balance at beginning of period	$	13,843				$	10,944				$	12,191				$	9,597
Net earnings		716					646					2,492					2,072
Cash dividends		(76	)				(46	)				(200	)				(125	)
Share repurchases		(160	)				-					(160	)				-
Balance at end of period	$	14,323				$	11,544				$	14,323				$	11,544

Lowe's Companies, Inc.
Consolidated Balance Sheets (Unaudited)
In Millions, Except Par Value Data
		November 3,		October 28,		February 3,
		2006		2005		2006
Assets
Current assets:
Cash and cash equivalents		$	657	$	1,445	$	423
Short-term investments			464		864		453
Merchandise inventory - net			7,219		6,429		6,635
Deferred income taxes - net			157		104		155
Other current assets			140		200		122
Total current assets			8,637		9,042		7,788
Property, less accumulated depreciation			18,188		15,410		16,354
Long-term investments			121		296		294
Other assets			219		205		203
Total assets		$	27,165	$	24,953	$	24,639
Liabilities and shareholders' equity
Current liabilities:
Current maturities of long-term debt		$	89	$	632	$	32
Accounts payable			3,416		3,201		2,832
Accrued salaries and wages			373		369		424
Self-insurance liabilities			608		551		571
Deferred revenue			846		748		709
Other current liabilities			1,374		1,109		1,264
Total current liabilities			6,706		6,610		5,832
Long-term debt, excluding current maturities			4,337		3,749		3,499
Deferred income taxes			683		745		735
Other long-term liabilities			353		290		277
Total liabilities			12,079		11,394		10,343
Shareholders' equity:
Preferred stock - $5 par value, none issued			-		-		-
Common stock - $.50 par value;
Shares issued and outstanding
November 3, 2006	1,520
October 28, 2005	1,560
February 3, 2006	1,568		760		780		784
Capital in excess of par value			-		1,235		1,320
Retained earnings			14,323		11,544		12,191
Accumulated other comprehensive income			3		-		1
Total shareholders' equity			15,086		13,559		14,296
Total liabilities and shareholders' equity		$	27,165	$	24,953	$	24,639

Lowe's Companies, Inc.
Consolidated Statements of Cash Flows (Unaudited)
In Millions
	Nine Months Ended
	November 3, 2006			October 28, 2005
Cash flows from operating activities:
Net earnings	$	2,492		$	2,072
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization		907			771
Deferred income taxes		(54	)		24
Loss on disposition/writedown of fixed and other assets		35			23
Share-based payment expense		56			57
Changes in operating assets and liabilities:
Merchandise inventory - net		(584	)		(579	)
Other operating assets		(18	)		(116	)
Accounts payable		584			506
Other operating liabilities		225			602
Net cash provided by operating activities		3,643			3,360
Cash flows from investing activities:
Purchases of short-term investments		(248	)		(1,581	)
Proceeds from sale/maturity of short-term investments		490			1,083
Purchases of long-term investments		(225	)		(249	)
Proceeds from sale/maturity of long-term investments		141			10
Increase in other long-term assets		(8	)		(34	)
Fixed assets acquired		(2,724	)		(2,277	)
Proceeds from the sale of fixed and other long-term assets		30			44
Net cash used in investing activities		(2,544	)		(3,004	)
Cash flows from financing activities:
Proceeds from issuance of long-term debt		991			987
Repayment of long-term debt		(24	)		(23	)
Proceeds from issuance of common stock under employee stock purchase plan		36			32
Proceeds from issuance of common stock from stock options exercised		64			183
Cash dividend payments		(200	)		(125	)
Repurchase of common stock		(1,737	)		(495	)
Excess tax benefits of share-based payments		5			-
Net cash (used in) provided by financing activities		(865	)		559
Net increase in cash and cash equivalents		234			915
Cash and cash equivalents, beginning of period		423			530
Cash and cash equivalents, end of period	$	657		$	1,445