The Lowe’s Cos. beat a Wall Street earnings estimate even as revenue came in lower than anticipated.
The company posted net earnings of $2.99 billion, or $4.67 per diluted share, versus $3.02 billion, or $4.25 per diluted share, in the 2021 quarter.
Lowe’s bettered a Yahoo Finance-published analyst consensus estimate on earnings, at $4.59 per diluted share, but not the $28.12 sales estimate.
Total sales for the second quarter were $27.48 billion versus $27.57 billion in the year-before quarter, Lowe’s reported, and comparable sales decreased 0.3%. Comps for the U.S. home improvement business increased 0.2% versus the year-previous period. DIY sales suffered from a shortened spring and lower demand in certain discretionary categories, Lowe’s pointed out, partially offset by a 13% increase in Pro customer sales.
Operating income was $4.23 billion versus $4.21 billion in the year-earlier quarter, the company noted.
“I am pleased that our team drove operating margin improvement and effectively managed inventory despite lower-than-expected sales, a clear reflection of our relentless focus on operating discipline and productivity,” Marvin Ellison, Lowe’s chairman, president and CEO, said in announcing the financials. “Our results in the first half were disproportionately impacted by our 75% DIY customer mix, which was partially offset by our double-digit Pro growth for the ninth consecutive quarter. Despite continued macro uncertainty, we remain confident in the long-term strength of the home improvement market and our ability to take share. To help our hourly front-line associates during this period of high inflation, we are awarding an incremental bonus of $55 million.”
