Lowe’s (NYSE: LOW) reported its first-quarter earnings on Wednesday and highlighted a 24% rise in sales, surpassing Wall Street Estimates. Consumers have continued to focus on improvements for their homes and professionals have begun to slowly spend more. Nevertheless, shares fell 2% in trading Wednesday.
“Our outstanding performance continued this quarter, as we delivered strong sales growth and operating margin expansion. 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.,” commented Marvin R. Ellison, Lowe’s president and CEO. “I would like to thank our front-line associates for their hard work and commitment to delivering exceptional customer service. Looking forward, I remain confident in our ability to accelerate our market share gains while driving further improvement in operating margin.”
The American home improvement retailer reported earnings of USD3.21 per share, compared to the expected USD2.62 a share. Revenue amounted to a total of USD24.42 Billion, higher than analysts anticipated USD23.86 Billion.
Lowe’s operated 1,972 home improvement and hardware stores in the United States and Canada ending April 30,2021. Same-store sales climbed 25.9% throughout the quarter, exceeding Wall Street’s forecast of 20.3%, according to a StreetAccount Survey.
“Although all of us are looking forward to a post-Covid world, our research tells us that the importance of the home will remain elevated for many years to come,” said Lowe’s CEO Marvin Ellison.
Lowe’s shares have surged 20% this year and have a current market value of USD138.24 Billion.