Lowe's beats estimates, even as DIY consumers pull back

Lowe's Companies Inc. reported higher-than-expected quarterly revenue of $21.36 billion, surpassing Wall Street's forecast of $21.13 billion, despite a decline in DIY consumer spending. The company saw a slight improvement in same-store sales, which decreased by 4.1% compared to a 4.3% drop last year. Adjusted earnings per share were $3.06, beating the expected $2.95 but lower than the previous year's $3.67.

CEO Marvin Ellison credited the positive results to strong execution and customer service enhancements, including the rollout of a DIY loyalty program and expanded same-day delivery. The company's focus on professional customers and online sales helped offset the decline in big-ticket purchases by everyday consumers. Despite the challenging market conditions influenced by a weak housing market and cautious consumer spending, Lowe's reaffirmed its 2024 outlook, expecting total sales between $84 to $85 billion and a 2% to 3% decline in same-store sales.

Lowe's same-store sales performance this quarter saw a decline of 4.1%, which is slightly better than the 4.3% drop observed in the same period last year. The decline was driven by everyday customers pulling back on big-ticket items. However, this was partially offset by positive comparable sales in Pro and online.