Lowe’s Gross sales, Revenue High Estimates Regardless of Continued ‘Huge Ticket’ Softness

Lowe’s (LOW) reported third-quarter outcomes Tuesday morning above analysts’ expectations regardless of “continued softness” in big-ticket discretionary purchases.

Lowe’s registered $20.17 billion in income for the quarter, beneath the $20.47 billion it reported a 12 months in the past however nonetheless higher than the $19.89 billion consensus estimate of analysts compiled by Seen Alpha. It posted $1.70 billion in internet revenue, or $2.99 per share, higher than projections of $1.60 billion and $2.82 per share, respectively.

“Our outcomes this quarter have been modestly better-than-expected, even excluding storm-related exercise, pushed by high-single-digit optimistic comps in Professional, robust on-line gross sales and smaller-ticket out of doors DIY tasks,” Lowe’s Chief Govt Officer (CEO) Marvin Ellison stated.

The corporate stated its comparable retailer gross sales declined by simply over 1% through the quarter due to “continued softness” in big-ticket discretionary demand, which was offset by progress in its on-line gross sales and operations serving skilled contractors.

Lowe’s additionally lifted its gross sales projections for the total fiscal 12 months to $83 billion to $83.5 billion, up from $82.7 billion to $83.2 billion beforehand, but in addition barely lowered its adjusted working margin projection.

Lowe’s shares, which had risen practically 22% this 12 months by Monday’s shut have been down about 2.5% to $265 after the outcomes have been launched.

Rival Dwelling Depot Beat Estimates, Raised Gross sales Outlook

Lowe’s outcomes come per week after Dwelling Depot’s, which noticed the corporate beat estimates and lift its fiscal 2024 gross sales progress projections. Nevertheless, Dwelling Depot CEO Ted Decker warned that the corporate nonetheless noticed “macroeconomic uncertainty” within the quarter.

Lowe’s has reported declining gross sales in current quarters, with executives saying inflation had pushed prospects to focus spending on necessities and shy away from “massive ticket” purchases like home equipment and home-improvement tasks. Dwelling Depot had confronted comparable issues till its gross sales rose year-over-year in its third-quarter report.