Lowe’s earnings high estimates as same-store gross sales leap 28%, warns some DIY developments might fade

0
140

Buyers carrying protecting masks wait in line to enter a Lowe’s Cos. retailer in San Bruno, California, U.S., on Wednesday, Could 20, 2020.

David Paul Morris | Bloomberg | Getty Photographs

Lowe’s stated Wednesday that its fourth-quarter same-store gross sales climbed 28.1%, as shoppers continued to spend cash on residence initiatives in the course of the pandemic.

That is increased than the 22% progress that analysts anticipated, in response to StreetAccount.

Shares of the corporate had been up lower than 1% in premarket buying and selling.

Here is what the corporate reported for the quarter ended Jan. 29 in contrast with what Wall Road was anticipating, primarily based on a survey of analysts by Refinitiv:

  • Earnings per share: $1.33, adjusted, vs. $1.21 anticipated
  • Income: $20.31 billion vs. $19.48 billion anticipated

Lowe’s reported fourth-quarter internet revenue of $978 million, or $1.32 per share, up from $509 million, or 66 cents per share, a yr earlier.

Excluding objects, it earned $1.33 per share, exceeding the $1.21 per share anticipated by analysts surveyed by Refinitiv.

Internet gross sales rose to $20.31 billion, outpacing analysts’ expectations of $19.48 billion.

Gross sales at its U.S. shops open a minimum of a yr and on-line grew by 28.6% within the quarter.

Lowe’s CEO Marvin Ellison stated in a press launch that the corporate noticed excessive demand throughout the board. It had gross sales progress of 16% in all merchandising departments and of greater than 19% in all areas of the nation. On-line gross sales grew by 121% within the quarter, he stated.

Lowe’s reiterated its prior forecast. At an investor day in December, Chief Monetary Officer David Denton stated home improvement sales will likely decline in 2021 as extra folks get Covid-19 vaccines and spend extra time outdoors of their houses. He stated the retailer’s outlook for 2021 anticipates a between 5% and seven% drop in demand for the house enchancment sector on a mixture adjusted foundation.

The corporate stated it spent over $100 million within the fourth quarter and greater than $900 million for the yr on extra Covid-related pay and advantages for workers. It stated it spent practically $1.3 billion in pandemic-related bills, together with increased wages and retailer security measures within the fiscal yr.

As of Tuesday’s shut, Lowe’s shares are up practically 35% over the previous yr. The corporate’s market worth is $123.53 billion.

Learn the whole press launch here.

This story is growing and will likely be up to date.