Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER
Lowe's beats sales expectations as home improvement spending surges
© Reuters. FILE PHOTO: A Lowe's hardware story is show in Carlsbad, California
(Reuters) - Lowe's Cos Inc (N:LOW) blew past analysts' estimates for quarterly sales and profit on Wednesday as it benefited from a surge in demand for home improvement products from consumers stuck indoors due to the COVID-19 pandemic.
The company also posted a 34.2% rise in quarterly same-store sales, beating analysts' estimates of a 13.2% increase, and said the momentum was carrying into August.
With a large base of do-it-yourself customers, Lowe's has been among the chief beneficiaries of people undertaking minor home repair, painting or gardening work during the crisis.
That helped the company's same-store sales far outpace the 23.4% rise recorded by larger rival Home Depot Inc (N:HD), which relies more on demand from handymen, carpenters and professional contractors, whose businesses have only recently started to pick up.
Wedbush Securities analysts estimate that nearly 75% of Lowe's sales come from DIY customers, compared with about 55% for Home Depot.
Interactive graphic on same-store sales https://graphics.reuters.com/HOMEIMPROVEMENT-RESULTS/xegvbazrdpq/index.html
"Lowe's Q2 is one for the record books," Well Fargo analysts wrote, adding that while DIY demand could slow in coming quarters, Lowe's would still see the benefits of more people moving out to suburban areas - closer to where a majority of its stores are located.
Total net sales rose 30.1% to $27.30 billion, beating expectations of $24.27 billion, according to IBES data from Refinitiv.
Net earnings rose nearly 70% to $2.83 billion, or $3.74 per share, in the quarter, despite the company spending about $460 million on improving store safety, as well as additional compensation for its employees working during the crisis.
Excluding items, the company earned $3.75 per share, while analysts had expected a profit of $2.95 per share.
Shares of the company were up 1.5% in trading before the bell.
Related Articles
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.