Lowe’s earnings top estimates as same-store sales jump 28%, warns some DIY trends could fade

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

David Paul Morris | Bloomberg | Getty Images

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

That’s greater than the 22% development that analysts anticipated, in accordance with StreetAccount.

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

Here’s what the corporate reported for the quarter ended Jan. 29 in contrast with what Wall Street was anticipating, based mostly on a survey of analysts by Refinitiv:

  • Earnings per share: $1.33, adjusted, vs. $1.21 anticipated
  • Revenue: $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 12 months earlier.

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

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

Sales at its U.S. shops open at the least a 12 months and on-line grew by 28.6% within the quarter.

Lowe’s reiterated its prior forecast. At an investor day in December, Lowe’s Chief Financial Officer David Denton stated residence enchancment sales will doubtless decline in 2021 as extra folks get Covid-19 vaccines and spend extra time exterior 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 combination adjusted foundation.

As of Tuesday’s shut, Lowe’s shares are up practically 35% over the previous 12 months. The firm’s market worth is $123.53 billion.

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

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