A customer pushes a shopping cart to the entrance of a Lowe’s store in Concord, California on Tuesday, February 23, 2021.
David Paul Morris | Bloomberg | Getty Images
Lowes On Wednesday, it exceeded analysts’ expectations for fiscal third quarter results as the company saw a surge in home improvement and online sales.
The home improvement retailer raised its forecast, saying it expects sales of $ 95 billion. It had previously forecast sales of $ 92 billion.
In pre-trading hours, stocks rose nearly 4%.
Here’s what the company reported for the third fiscal quarter ended October 29, versus Wall Street expectations, based on an analyst survey by Refinitiv:
- Earnings per share: $ 2.73 versus $ 2.36 expected
- Revenue: $ 22.92 billion versus $ 22.06 billion expected
Lowe’s profit rose $ 1.90 billion, or $ 2.73 per share, from $ 692 million, or 91 cents per share, a year earlier. The results surpassed what analysts surveyed by Refinitiv had expected to be $ 2.36 per share.
Net sales rose from $ 22.31 billion last year to $ 22.92 billion, above analysts’ expectations of $ 22.06 billion.
Lowe’s sales in the same store increased 2.2% for the three month period. According to StreetAccount, that was a clear difference to the analysts forecast of a decline of 1.5%.
A strong housing market has boosted sales for Lowe’s and its rival. Home depot. Even as the prices of houses and building materials go up, Americans keep buying. Builders’ trust increased this week, because of the great appetite for new single-family homes.
The dealers also saw customers Shop for paint, pillows, and more as they spent more time at home tackling do-it-yourself projects during the pandemic.
With consumers on the move again, Lowe’s and Home Depot are increasingly trying to attract the home improvement workers who homeowners hire to do renovations or upgrade their kitchens.
Home Depots the third quarter result reflected this shift, As customer transactions decreased, the average tickets increased 12.9% to $ 82.38. The retailer said the momentum continued into the fourth quarter, with sales starting a little above the third quarter level.
Under CEO Marvin Ellison, Lowe’s stepped up its efforts to attract professionals because they are more persistent and more money-conscious. Ellison said in a press release that the company’s sales to professionals rose 16% in the third quarter. He said sales on the website were up 25%.
Lowe plans to buy back $ 3 billion of shares in the fourth quarter, bringing total buybacks to $ 12 billion for the year. In the last quarter, it repurchased 13.7 million of its own shares for $ 2.9 billion.