A buyer pushes a purchasing cart in direction of the doorway of a Lowe’s retailer in Harmony, California, on Tuesday, Feb. 23, 2021.
David Paul Morris | Bloomberg | Getty Photographs
Shares rose greater than 1% in premarket buying and selling, as the house enchancment retailer stated momentum carried into February.
Aging houses, rising actual property values and generational tendencies are fueling demand for residence tasks. People — together with millennials, the nation’s largest era — have been shopping for houses and upgrading to larger ones throughout the pandemic. That has depleted the provision of accessible houses and impressed some to rent contractors to redo a toilet, substitute a roof or tackle different comparable tasks.
These dynamics have lifted gross sales for Lowe’s and competitor, Home Depot.
This is what Lowe’s reported for the quarter ended Jan. 28 in contrast with what Wall Road was anticipating, based mostly on a survey of analysts by Refinitiv:
- Earnings per share: $1.78 vs. $1.71 anticipated
- Income: $21.34 billion vs. $20.90 billion anticipated
Within the fourth quarter, Lowe’s web revenue rose to $1.21 billion, or $1.78 per share, from $978 million, or $1.32 per share, a yr earlier. The outcomes have been above the $1.71 anticipated by analysts surveyed by Refinitiv.
Gross sales climbed to $21.34 billion from $20.31 billion final yr and outpaced analysts’ expectations of $20.90 billion.
Lowe’s same-store gross sales within the U.S. elevated 5.1% within the fourth quarter. The corporate stated gross sales from residence professionals grew 23% within the three-month interval, too. The professionals are usually steadier and extra profitable clients.
Lowe’s has traditionally drawn about 20% to 25% of its complete gross sales from professionals in contrast with Dwelling Depot, which will get about half of its gross sales from them. Lowe’s has been chasing professionals, nonetheless, with a brand new loyalty program and perks like reserved parking and free air for tires at its shops.
Professional gross sales are rising for an additional motive, too. Because the omicron variant recedes and schedules get busier once more, some individuals are hiring contractors quite than taking over do-it-yourself tasks.
The retailer stated it expects earnings per share to vary from $13.10 to $13.60 on income of $97 billion to $99 billion to in fiscal 2022. It had beforehand forecast earnings per share of $12.94 on income of $97 billion for the yr, which is every week longer than fiscal 2021.
It stated same-store gross sales will vary from a decline of 1% to a rise of 1% for the total yr.
As of Tuesday’s shut, Lowe’s shares are up 27% over the previous 12 months. Shares closed Tuesday at $214.59, bringing Lowe’s market worth to $144.58 billion.
This story is creating. Please examine again for updates.