Lowe's (LOW) - Get Lowe's Companies, Inc. Report posted stronger-than-expected third quarter earnings Wednesday, and boosted its full-year sales forecast, as the home improvement retailer followed similarly solid results from its larger rival Home Depot (HD) - Get Home Depot, Inc. Report.
Lowe's said adjusted earnings for the three months ending on October 29 were pegged at $2.73 per share, a 38% increase from the same period last year and firmly ahead of the Street consensus forecast of $2.35 per share.
Group revenues, Lowe's said, rose 2.7% to $22.9 billion, topping analysts' estimates of a $22.03 billion tally. U.S. same-store sales rose 2.2%, compared to the Refinitiv forecast of a 2.9% decline.
Looking into the final portion of the year, Lowe's said it sees revenues in the region of $95 billion, a $3 billion improvement from its prior forecast, with same-store sales rising 33% from 2019 levels.
"Our momentum continued this quarter, with U.S. sales comps up nearly 34% on a two-year basis, as our Total Home strategy is resonating with the Pro and DIY customer alike. In the quarter, we drove over 16% growth in Pro and 25% on Lowes.com," said CEO Marvin Ellison. "We also delivered operating margin expansion by driving productivity through disciplined operational execution and cost management."
"I would like to thank our front-line associates for their ongoing dedication to outstanding customer service," he added. "Looking forward, I remain confident in our ability to drive further market share gains, operating margin expansion, and long-term value for our shareholders."
Lowe's shares were marked 4.2% higher in early Wednesday trading following the earnings release to change hands at $254.80 each.
Home Depot also posted stronger-than-expected third quarter earnings Tuesday as home improvement buyers shrugged-off the recent surge in inflation and boosted average ticket sales.
Home Depot said earnings for the three months ending on October 31, the company's fiscal third quarter, were pegged at $3.92 per share, up 23.2% from the same period last year and well ahead of the Street consensus forecast of $3.40 per share. Group revenues, Home Depot said, rose 9.8% to $36.8 billion, again topping analysts' estimates of a $34.95 billion tally.