Appliances and lawn and garden were among the product categories that helped Lowe’s Cos. turn in comparable sales gains for the third quarter, as adjusted earnings also increased.
Net earnings were $1.62 billion, or $2.88 per diluted share, versus $1.7 billion, or $2.99 per diluted share, in the year-prior quarter, the company indicated. Adjusted for one-time events, earnings per diluted share were $3.06 versus $2.89 in the period a year earlier.
An analyst consensus estimate from MarketBeat called for earnings per diluted share of $2.97 and revenues of $20.88 billion.
Comparable sales increased 0.4% in the quarter year over year, Lowe’s reported, primarily driven by 11.4% online sales growth, double-digit growth in home services and continued growth in Pro sales.
Net sales were $20.81 billion versus $20.17 billion in the year-before quarter. Operating income was $2.48 billion versus $2.54 billion in the period a year previous.
Lowe’s updated its guidance on total sales to $86 billion from $84.5 billion to $85.5 billion, comps to flat from flat to up 1% and adjusted diluted earnings per share to $12.25 from $12.20 to $12.45.
In a conference call, William Boltz, Lowe’s executive vice president, merchandising, commented on product category results. Boltz said the company “delivered positive comps in appliances, flooring, paint and kitchens and bath. We continue to strengthen our leadership position in appliances by providing customers with a value proposition that no other retailer can match. This includes the widest assortment of top brands and innovative products, all at a must-win price point.” Boltz added a positive performance in lawn and garden, helped by relatively mild weather in the United States.
As to tariffs, Brandon Sink, Lowe’s executive vice president and CFO, said the company continues to take measured responses as they’re imposed, with the effects on the business, including resulting price increases taken, modest so far.
Marvin Ellison, Lowe’s chairman, president and CEO, said, “The company delivered another quarter of positive comp sales, and we’re pleased to start November with positive comps as well, despite headwinds related to hurricane activity in the prior year. With the closing of the FBM acquisition last month, we look forward to enhancing our offering to Pro customers and creating more sustainable, long-term sales and profit expansion for the company.”
Lowe’s completed the acquisition of Foundation Building Materials, a building materials and construction products distributor, in October.
