Revenue fell 5 percent to $11.05 billion from $11.63 billion. Analysts expected $10.85 billion. Revenue in stores open at least one year rose 1.9 percent. The measure is a key gauge of a retailer's fiscal health because it excludes stores that open or close during the year.
Morningstar analyst Peter Wahlstrom said the quarter was generally good and in line with his expectations, helped by better gross margins — the amount of each dollar in revenue a company actually keeps — and a lower share count.
Standard & Poor analyst Michael Souers kept his "Sell" recommendation on the stock.
"While we see a modest recovery in housing, we see rising interest rates as a threat to home refinancing, a key driver of remodeling," he said.
For the fiscal year, net income rose 7 percent to $1.96 billion, or $1.69 per share, from $1.84 billion, or $1.43 per share. Revenue edged up to $50.52 billion from $50.21 billion last year.
Lowe's, which operates 1,754 stores in the U.S., Canada and Mexico, expects fiscal 2013 net income of $2.05 per share. Analysts expect $2.10 per share.
The company expects revenue to rise 4 percent, implying revenue of $52.54 billion. Analysts expect $51.69 billion.
Shares fell $1.81, or 4.8 percent, to close at $35.86 Monday. They have traded in a 52-week range of $24.76 to $39.98.