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Lowe’s did not provide an update on its forecast for 2020, which was withdrawn in May.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