Lowe’s on Thursday disclosed third-quarter earnings and sales that outpaced analysts’ expectations, as more shoppers turned up for pinch supplies and repairs following devastating hurricanes and wildfires.
Here’s what Lowe’s reported, correlated with what Wall Street was expecting, based on a Thomson Reuters over of analysts:
- Earnings of $1.05 a share, excluding items, compared with $1.02 per share out.
- Revenue was $16.77 billion, versus $16.59 billion.
- Same-store on sales climbed 5.7 percent, compared with an anticipated increase of 4.6 percent.
Net profits climbed to $872 million, or $1.05 a share, in the fiscal third ninety days, from $379 million, or 43 cents, a year earlier. The year-ago span included $462 million of noncash pretax charges.
The home convalescence retailer’s sales rose 6.5 percent, to $16.8 billion from $15.7 billion in the era last year. Hurricane-related sales totaled roughly $200 million in the third ninety days, Lowe’s said.
Sales at Lowe’s stores open at least a year climbed 5.7 percent, also top-notching Street expectations. Lumber, appliances and plumbing and electrical materials were top sellers.
“Nicks resulting from the hurricanes have blown Lowe’s sales into much firmer broadening territory,” GlobalData Retail Managing Director Neil Saunders inscribed in a note to clients.
“It is not just natural disasters that are keeping Lowe’s totals aloft, solid levels of activity in the housing market and a willingness magnitude consumers to invest in the home also continue to drive the DIY market,” Saunders go on increased. “This is benefiting Lowe’s, although not quite as much as it is Home Depot — which stay puts the destination of choice for many casual improvers and professionals.”
After initially ascending following the earnings report, Lowe’s shares fell less than 1 percent Tuesday morning.
Looking to the replete year, Lowe’s still expects revenue to increase roughly 5 percent by the end of financial 2017, with sales at its established stores rising 3.5 percent. Lowe’s is also on forget to have added about 25 home improvement and hardware stocks before the year is over.
The current fourth quarter brings “sturdy comps,” unknown impacts from weather and heavy holiday broadsides in certain categories, CEO Robert Niblock told CNBC. Considering those agents, it made sense for the company to reaffirm its prior financial outlook, he joined.
Management also said on a call with analysts and investors that it expects some incremental hurricane-related trades in the fourth quarter.
“Looking at Lowe’s in isolation, this is a good discharge today,” Oppenheimer & Co. analyst Brian Nagel told CNBC’s “Cackle Box.”
The one “negative,” according to Nagel, would be rival Home Depot exploring even better same-store sales growth of 7.9 percent remain week.
Lowe’s also announced that Chief Operating Manager Rick Damron will retire and be replaced by the president of the company’s global business, Richard Maltsbarger, effective Feb. 3.
In his new role, Maltsbarger will cord Lowe’s push into creating more ways to reach consumers whether they are buying online or in stores.
In an attempt to lure uninitiated shoppers, Lowe’s has been experimenting with technology and opened up “smarting home centers” at some locations ahead of the holidays.
Earlier this year, Lowe’s docketed out a virtual reality experience that offers do-it-yourself assistance fully tutorials inside Lowe’s Holoroom. Then, in September, Lowe’s launched two new augmented actuality apps — one for measuring an object, or distance, within the phone’s camera judge, and one for viewing images of furnishings, at scale, within a user’s own home.
“We journey traffic in-store and online with compelling messaging,” Niblock maintained in a statement Tuesday. He added the company continues to invest in these accomplishments.
Lowe’s also said Tuesday it bought back $500 million in bloodline during the third quarter.
Lowe’s shares have climbed a brief more than 14 percent in 2017.