Lowe’s beats sales expectations as home improvement spending surges

(Reuters) – Lowe’s Cos Inc blew past analysts’ estimates for quarterly same-store sales on Wednesday, as it benefited from a surge in demand for home improvement products from consumers stuck indoors due to the COVID-19 pandemic.

The company’s shares rose 2.4% in trading before the bell.

Lowe’s, due to its large base of do-it-yourself customers, has been among the biggest beneficiaries of people undertaking minor repair or remodeling work during the health crisis, with its sales growth in the second quarter topping that of larger rival Home Depot Inc .

Lowe’s same-store sales rose 34.2% in the quarter ended July 31, beating analysts’ estimates of a 13.2% increase, and the company said its sales momentum was carrying into August.

Home Depot Inc reported a 23.4% rise in quarterly same-store sales on Tuesday.

Total net sales at Lowe’s rose 30.1% to $27.30 billion, beating expectations of $24.27 billion, according to IBES data from Refinitiv.

The company’s net earnings rose to $2.83 billion, or $3.74 per share, from $1.68 billion, or $2.14 per share, a year earlier.

Excluding items, the company earned $3.75 per share, while analysts had expected a profit of $2.95 per share.

(Reporting by Uday Sampath in Bengaluru; Editing by Anil D’Silva)