Lowe's (LOW), the ;one of the largest U.S. home improvement retailers, said profits and sales fell less than expected in the quarter ended Aug. 4, as online and home professional growth helped offset lower sales. spending on discretionary DIY projects.
Points to remember
- Lowe said its earnings and sales fell less than expected as growth in online and home-based professionals helped offset lower spending on discretionary DIY projects.
- Net income was just over $2.67 billion, or $4.56 per share, above an estimate of $4.49 .
- Comparable store sales fell 1.6% due to declining demand for DIY projects, but the decline was less than expected.
Net income was just over $2.67 billion, or $4.56 per share, down 10.7% from $2.99 billion or $4.67 per share in the quarter last year. Despite this decline, earnings per share (EPS) exceeded the estimate of $4.49. Net sales totaled $24.95 billion, down from $27.48 billion in the year-ago quarter and just below the $24.99 billion estimate.
Comparable store sales have fell 1.6% due to lower demand for DIY projects – a key revenue driver – but the decline was smaller than expected as spending online and by construction professionals house have increased.
Our investments in our Total strategy Home continued to drive growth in the Pro and Online segments this quarter, &" Marvin Ellison, president and CEO of Lowe's, said in a statement.
The company reaffirmed its guidance for the full year, projecting total sales of between $87 billion and $89 billion. Same-store sales are on track to fall between 2% and 4%, while adjusted EPS is expected to be in the range of $13.20 to $13.60. Operating margin, which measures how efficiently a company can convert a dollar of revenue into profit, should be between 13.4% and 13.6%.
Lowe's actions ; s jumped 4% in early trading on Tuesday before returning some gains. They are up 11% so far this year, compared to a 4% gain for shares of rival Home Depot.
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