Lowe’s reported third-quarter earnings and gross sales that outpaced analysts’ expectations, as extra consumers turned up at its shops for emergency provides and repairs following devastating hurricanes and wildfires.
The house enchancment retailer’s shares had been climbing greater than 1.5 p.c in premarket commerce Tuesday on the information.
This is what Lowe’s reported, in contrast with what Wall Avenue was anticipating, based mostly on a Thomson Reuters survey of analysts:
- Earnings of $1.05 a share, excluding objects, in contrast with a forecast revenue of $1.02 per share.
- Income was $16.77 billion, versus an estimate of $16.59 billion.
- Similar-store gross sales climbed 5.7 p.c, in contrast with an anticipated enhance of four.6 p.c.
Web earnings climbed to $872 million, or $1.05 a share, within the fiscal third quarter, from $379 million, or 43 cents, a 12 months in the past. The year-ago interval included $462 million of non-cash pre-tax costs.
Complete gross sales rose 6.5 p.c, to $16.eight billion from $15.7 billion in the identical interval final 12 months. Hurricane-related gross sales totaled roughly $200 million within the third quarter, Lowe’s mentioned.
Gross sales at Lowe’s shops open at the very least a 12 months climbed 5.7 p.c, additionally topping Avenue expectations.
Seeking to the complete 12 months, Lowe’s nonetheless expects income to extend roughly 5 p.c by the top of fiscal 2017, with gross sales at its established shops rising three.5 p.c. Lowe’s can be on monitor to have added about 25 dwelling enchancment and shops earlier than the 12 months is over.
“Taking a look at Lowe’s in isolation, it is a good report as we speak,” Oppenheimer & Co. analyst Brian Nagel advised CNBC’s “Squawk Box” Tuesday morning.
Additionally on Tuesday, Lowe’s announced Chief Working Officer Rick Damron will retire and get replaced by the president of the corporate’s worldwide enterprise, Richard Maltsbarger, efficient Feb. three.
In his new function, Maltsbarger will spearhead Lowe’s push into creating extra “omni-channel experiences” for patrons.
In an try and lure youthful consumers to its shops, Lowe’s has been experimenting with know-how and opened up “smart home centers” at some areas forward of the vacations.
“We drove site visitors in-store and on-line with compelling messaging,” CEO Robert Niblock mentioned Tuesday in a press release. “We proceed to put money into omni-channel capabilities.”
Earlier this year, Lowe’s rolled out a digital realty expertise that gives do-it-yourself help by tutorials inside Lowe’s Holoroom. Then, in September, Lowe’s launched two new augmented actuality apps — one for measuring an object, or distance, inside the cellphone’s digicam view, and one for viewing photos of furnishings, at scale, inside a consumer’s own residence.
Lowe’s mentioned Tuesday it purchased again $500 million in inventory in the course of the third quarter.
As of Monday’s market shut, Lowe’s shares have climbed greater than 14 p.c in 2017.
Learn More about Best Forex Signals