Lowe’s (NYSE:LOW) beat analysts’ expectations for fiscal third-quarter earnings on Wednesday, as the company got a bump in business from home professionals and online sales.
The home improvement retailer raised its forecast, saying it anticipates $95 billion in sales. It had previously predicted revenue of $92 billion.
For Q3, Lowe’s profits rose to $1.90 billion, or $2.73 per share, from $692 million, or 91 cents a share, a year earlier. The results outmatched the $2.36 per share expected by analysts.
Net sales climbed to $22.92 billion from $22.31 billion last year and were higher than analysts’ expectations of $22.06 billion.
Lowe’s same-store sales grew by 2.2% in the three-month period. That was a sharp difference from analysts’ prediction of a 1.5% decline, according to StreetAccount.
A strong housing market — and a wave of bigger projects — has lifted sales for Lowe’s and its rival, Home Depot (NYSE:HD). Even as prices rise on houses and construction materials, Americans have continued to buy. Homebuilder confidence surged this week, due to the big appetite for new single-family homes.
The retailers also saw customers shop for paint, throw pillows and more as they spent more time at home and tackled do-it-yourself projects during the pandemic.
Under CEO Marvin Ellison, Lowe’s has stepped up efforts to attract pros, since they are steadier and bigger spenders. Ellison said in a press release that the company’s sales to pros rose 16% in the third quarter. He said sales on its website jumped by 25%.
LOW shares hiked $7.06, or 2.9%, to $251.84