Lowe's online sales surge 135% in coronavirus do-it-yourself boom
Sales soared 30% in the three months through June
Storch Advisors CEO and former Toys ‘R’ Us Chairman and CEO Gerald Storch discusses the winners and losers in retail amid the coronavirus outbreak and violent protests across the U.S.
Lowe’s Companies Inc. sales soared 30% in the three months through June as customers hunkered down at home during the COVID-19 pandemic decided to spruce up their houses and went online to buy tools and materials.
The Mooresville, N.C.-based home-improvement chain reported second-quarter revenue of $27.3 billion as e-commerce sales spiked 135% from a year ago. Net earnings were $2.8 billion, or an adjusted $3.75 per share when excluding the impact of restructuring its business in Canada
The results outpaced the $24.3 billion of sales and adjusted earnings of $2.95 per share that Wall Street analysts surveyed by Refinitiv were expecting.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LOW | LOWE'S COMPANIES INC. | 270.89 | +3.68 | +1.38% |
“Sales were driven by a consumer focus on the home, core repair and maintenance activities, and wallet share shift away from other discretionary spending," Lowe’s CEO Marvin Ellison said in a statement.
All merchandising divisions posted comparable sales growth of more than 20% and all U.S. geographic regions delivered comparable sales growth of at least 30%.
The company's U.S. home improvement business saw sales at stores open at least a year spike 35.1% versus last year.
Lowe's withdrew its 2020 financial guidance in May due to the uncertainty caused by COVID-19. The company did not provide an updated forecast.
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Shares were up 32% this year through Tuesday, outperforming the S&P 500's 4.92% gain.