Lowe's outpaces estimates as hurricane repairs drive sales
Lowe's Companies got a boost from hurricane-related spending as the retailer topped Street estimates and delivered a strong performance in its third quarter.
The home improvement giant reported that its third-quarter sales increased 6.5% to $16.8 billion from $15.7 billion last year. Same-store rose 5.7%. Hurricane-related sales in the quarter were approximately $200 million.
"It is not just natural disasters that are keeping Lowe's numbers aloft, solid levels of activity in the housing market and a willingness among consumers to invest in the home also continue to drive the DIY market," commented Neil Saunders, managing Director of GlobalData Retail. "This is benefitting Lowe's, although not quite as much as it is Home Depot, which remains the destination of choice for many casual improvers and professionals."
Lowe's reported net earnings of $872 million and diluted earnings per share of $1.05 for the quarter, compared to earnings of $379 million and earnings per share of $0.43 in the year-ago quarter.
"During the third quarter, we drove traffic in-store and online with compelling messaging and integrated customer experiences," commented Robert A. Niblock, Lowe's chairman, president and CEO. "We continue to invest in omnichannel capabilities to enhance value for customers and shareholders. I am also pleased with the progress we've made to enhance our product and service offering for the Pro customer, delivering another quarter of comparable sales above the company average."
For the full year, Lowe's still expects revenue to increase roughly 5% with comp sales rising 3.5%.
As of Nov. 3, 2017, Lowe's operated 2,144 stores in the United States, Canada and Mexico.
The home improvement giant reported that its third-quarter sales increased 6.5% to $16.8 billion from $15.7 billion last year. Same-store rose 5.7%. Hurricane-related sales in the quarter were approximately $200 million.
"It is not just natural disasters that are keeping Lowe's numbers aloft, solid levels of activity in the housing market and a willingness among consumers to invest in the home also continue to drive the DIY market," commented Neil Saunders, managing Director of GlobalData Retail. "This is benefitting Lowe's, although not quite as much as it is Home Depot, which remains the destination of choice for many casual improvers and professionals."
Lowe's reported net earnings of $872 million and diluted earnings per share of $1.05 for the quarter, compared to earnings of $379 million and earnings per share of $0.43 in the year-ago quarter.
"During the third quarter, we drove traffic in-store and online with compelling messaging and integrated customer experiences," commented Robert A. Niblock, Lowe's chairman, president and CEO. "We continue to invest in omnichannel capabilities to enhance value for customers and shareholders. I am also pleased with the progress we've made to enhance our product and service offering for the Pro customer, delivering another quarter of comparable sales above the company average."
For the full year, Lowe's still expects revenue to increase roughly 5% with comp sales rising 3.5%.
As of Nov. 3, 2017, Lowe's operated 2,144 stores in the United States, Canada and Mexico.