Lowe’s (NYSE:LOW) outpaced earnings estimates on Wednesday, as sales of home decor and the growth of its home installations and professional business helped drive sales in the second quarter.
CEO Marvin Ellison said demand for kitchen, bath, flooring and appliances remains strong, but the home improvement retailer has noticed a shift in its business. He said more customers are shopping on weekdays, as they spend weekends on vacations, at parks or at social events again.
Still, he said he remains confident that people will continue to spend on their homes — especially since many now have bigger houses or larger yards. Some have taken advantage of low interest rates to purchase a bigger home or expand the one they own. They’ve added more space to work remotely, or finally tackled a renovation project after seeing home values rise.
Lowe’s profits rose to $3.02 billion, or $4.25 per share, from $2.83 billion, or $3.74 per share, a year earlier. The results outpaced the $4.01 per share expected by analysts.
Net sales climbed to $27.57 billion from $27.30 billion last year and were higher than analysts’ expectations of $26.85 billion.
The home improvement retailer has reported quarter after quarter of eye-popping growth. However, that has teed up an almost inevitable decline of sales growth as consumers reemerge into the world and can choose to spend money in other ways, from booking vacations to planning parties.
LOW shares vaulted $11.05, or 6.1%, to $193.31.