Lowe’s chief Marvin Ellison, in reporting a second-quarter earnings beat for the retailer while revenues fell a bit short of expectations, said the outlook for the home improvement market is improving.
A Yahoo Finance-published analyst consensus estimate called for earnings per diluted share of $4.49 and revenues of $24.99 billion.
Comparable sales decreased 1.6%, with strong spring recovery and Pro and online sales growth, partially offsetting lumber deflation and lower DIY discretionary demand, Lowe’s noted. Net sales were $24.96 billion versus $27.48 billion in the year-previous quarter. Operating income was $3.89 billion versus $4.23 billion in the year-before period.
In pointing to positive results during a conference call, Marvin Ellison, Lowe’s chairman, president and CEO, said the company is outperforming the market on appliances. He also noted Lowe’s sees a better outlook for do-it-yourself sales from somewhat improving consumer economic sentiments and recent growth in real disposable income, realigned with growing wages to surpass inflation for the first time in two years.
“Our investments in our Total Home strategy continued to drive growth across pro and online this quarter,” Ellison said in announcing the financial results. “And we are excited by our recent launch of same-day delivery nationwide and the expansion of our rural merchandising framework to roughly 300 stores. Our ability to reduce expenses while improving customer service is the result of excellent execution by our team, and we remain confident in the mid- to long-term outlook for the home improvement industry. In recognition of the contributions of our front-line associates, we are awarding over $100 million in discretionary and profit-sharing bonuses to them this quarter. I would like to thank our front-line team for serving our customers and supporting our communities.”