Lowe’s Tops Earnings Estimates as Sales Rise

Lowe’s Tops Earnings Estimates as Sales Rise

Lowe’s (NYSE: LOW) topped earnings estimates for its fiscal third-quarter after experiencing a rise in demand from home professionals and online sales. The retailer increased its outlook, saying it now expects USD95 Billion in sales, higher than its previous prediction of USD92 Billion. Shares rose over 3% on Wednesday.

The home improvement retailer reported earnings of USD2.73 per share, compared to the expected USD2.36 a share. Revenue amounted to USD22.92 Billion, higher than analysts anticipated USD22.06 Billion.

“Our momentum continued this quarter, with U.S. sales comps up nearly 34% on a two-year basis, as our Total Home strategy is resonating with the Pro and DIY customer alike. In the quarter, we drove over 16% growth in Pro and 25% on Lowes.com. We also delivered operating margin expansion by driving productivity through disciplined operational execution and cost management,” commented Marvin R. Ellison, Lowe’s chairman, president, and CEO. “I would like to thank our front-line associates for their ongoing dedication to outstanding customer service. Looking forward, I remain confident in our ability to drive further market share gains, operating margin expansion, and long-term value for our shareholders.”

The company’s digital sales rose 25% within the third quarter. Additionally, the retailer plans to re-purchase USD3 Billion in shares within the fourth quarter, bringing the total of buybacks to USD12 Billion for the year.

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