Lowe’s Cos. did better than Wall Street expected on earnings in the third quarter but fell short on revenues as do-it-yourself customers stepped back from bigger-ticket purchases.
Net earnings were $1.77 billion, or $3.06 per diluted share, versus $154 million, or 25 cents per diluted share, in the year-earlier quarter. In the year-past period, earnings per share adjusted for one-time events was $3.27, Lowe’s pointed out.
Comparable sales decreased 7.4% in the quarter year over year due to a decline in DIY discretionary spending among consumers, partially offset by positive professional customer comp sales, the company stated.
Net sales were $20.47 billion versus $23.48 billion in the year-previous quarter. Operating income was $2.7 billion versus $924 million in the year-before period.
“In the third quarter, the company delivered strong operating performance and improved customer service despite a greater-than-expected pullback in DIY discretionary spending, particularly in bigger ticket categories,” said Marvin Ellison, Lowe’s chairman, president and CEO. “Given our 75% DIY mix, the DIY pressure disproportionately impacted our third quarter comp performance. At the same time, our investments in pro continue to resonate, resulting in positive pro comps again this quarter. As we look ahead, Lowe’s is committed to offering value and convenience this holiday season, helping our customers save time and money.”
