Lowe’s (NYSE: LOW) shares surged over 10% Wednesday following positive earnings and its raised sales forecast. The home improvement company strives to attract home professionals as people look to complete larger home projects. Lowe’s anticipates to make USD92 Billion in revenue throughout 2021, an increase from its previous forecast of USD86 Billion.
The retailer reported earnings of USD4.25 per share, compared to the expected USD4.01 a share. Revenue totaled USD27.57 Billion, higher than analysts anticipated USD26.85 Billion.
“Our strong results this quarter demonstrate that our Total Home strategy is working, with U.S. sales comps up 32% on a two-year basis. In the quarter, we drove 21% growth in Pro, 10% growth in Installation Services and strong comps across Décor product categories. On Lowes.com, sales grew 7% on top of 135% growth last year. We also delivered significant operating margin expansion through our disciplined focus on driving productivity across the company,” commented Marvin R. Ellison, Lowe’s chairman, president and CEO.
For the sixth straight quarter, all Lowe’s stores earned a Winning Together profit-sharing bonus, totaling approximately USD91 Million, which will go to front-line hourly workers. The Payment tops the initial targeted amount by USD20 Million.
Ellison added: “I would like to thank our front-line associates for their continued dedication to serving our customers and supporting safety in our stores. Looking forward, I am confident in the positive outlook for our industry, and our ability to drive operating margin expansion and market share gains.”
Lowe’s shares rose 11% in early mornings trading and has a current market cap of USD141 Billion.