Lowe’s earnings, revenue, tops Street as sales momentum continues

Lowe’s Companies reported a strong first quarter, fueled by consumer sales and increasing sales from the professional segment.

Lowe’s reported its fourth consecutive quarter of comp-store sales growth in the mid-20% range or higher as people continue to invest in home projects. Lowe’s president and CEO Marvin Ellison doesn’t see the boom ending anytime soon.

“Our research tells us that the importance of the home will remain elevated for many years to come,” Ellison said on the company’s earnings call.

Net income rose to $2.32 billion, or $3.21 a share, for the quarter ended April 30, from $1.34 billion, or $1.76 a share, in the year-ago period. That beat the FactSet consensus for earnings per share of $2.61.

Sales rose 24.1% to $24.42 billion, above estimates of $23.81 billion. Same-store sales increased 25.9%, more than expected. Since the second quarter of 2020, Lowe’s has reported U.S. comps of 35.1%, 30.4%, 28.6% and its most recent first quarter 2021 comps of 24.4%.

In April, Lowe’s debuted an in-store shopping experience created specifically for its professional (pro) customer base. It includes a wide array of new offerings, starting with a dedicated area, called The Pro Zone, for grab-and-go products that include popular pro items, new products and value packs.

“We delivered over 30% growth in Pro, over 18% growth in all 15 U.S. regions, and growth in Canada that outpaced the U.S.," stated Ellison. “Looking forward, I remain confident in our ability to accelerate our market share gains while driving further improvement in operating margin.”

As of April 30, 2021, Lowe's operated 1,972 stores in the United States and Canada.