Lowe’s (LOW) Q2 2020 income top estimates

Buyers wearing protective masks are waiting in line on Wednesday, May 20, 2020 at a Lowe’s Cos. Store in San Bruno, California, USA.

David Paul Morris | Bloomberg | Getty Images

Lowe’s on Wednesday blew past Wall Street forecasts with a 30% increase in revenue and a 68.7% jump in profits as consumers shifted spending from restaurants and traveled to home improvement projects during the coronavirus pandemic.

Shares of the company rose more than 2% in premium trading.

Here is what the company reported for the quarter ending July 31 compared to what Wall Street expected, based on a survey by analysts by Refinitiv:

  • Custom EPS: $ 3.75 vs. $ 2.95 expected
  • Turnover: $ 27.3 billion vs. $ 24.27 billion expected

Lowe’s reported second-quarter fiscal net income of $ 2.83 billion, or $ 3.74 per share, up from $ 1.68 billion, or $ 2.14 per share, a year earlier. The company said it spent $ 460 million over the past year on higher wages for workers per hour, in-store safety and support communities. It will also pay out a record quarterly bonus of $ 107 million to employees at all of its locations for overcoming its goals.

Excluding the impact of the restructuring of its Canadian business, the retailer earned $ 3.75 per share, beating the $ 2.95 per share expected by analysts researched by Refinitiv.

Net sales rose 30% to $ 27.3 billion, above expectations of $ 24.27 billion. The company reported same-store sales growth of 35.1% for its U.S. home improvement business, and Lowe’s website sales rose 135% as the pandemic pushed more customers to shop online.

“Sales were driven by a consumer focus on the home, core repair and maintenance activities, and wallet share shifted away from other discretionary expenditures,” CEO Marvin Ellison said in a statement.

Lowe’s did not provide an update on its forecast for 2020, which was withdrawn in May.

This is an evolving story. Please check back for updates.