Hurricane boosts home improvement demand; Lowe's (LOW.US) raises full-year comparable sales guidance
1min read Home improvement retailer Lowe's (LOW.US) raised its full-year comparable sales guidance on Tuesday as hurricanes boosted third-quarter sales, though tight spending remained.
The company reported third-quarter sales of $20.17 billion, down 1.5% year-over-year, but better than the market expected; non-GAAP EPS of $2.89, also better than the market expected.
Lowe's comparable sales in the third quarter fell 1.1%, but better than the 2.86% decline analysts expected. Notably, rival Home Depot (HD.US) reported last week that its comparable sales fell 1.3% in the third quarter, but better than the 3.3% decline analysts expected. Home Depot said last week that rebuilding efforts following the hurricanes boosted demand for building materials and paint.
The hurricanes, named Helene and Milton, struck parts of the U.S., including Florida and North Carolina, causing significant damage to homes, bridges, power infrastructure and crops.
"Even excluding the hurricane-related factors, our third-quarter performance was slightly better than expected, driven by high single-digit growth in the Pro segment, strong online sales and small outdoor DIY projects," Lowe's CEO Marvin Ellison said.
The company now expects comparable sales to fall 3% to 3.5% year-over-year in 2024, from its previous expectation of a 3.5% to 4% decline.
It also expects adjusted EPS of $11.80 to $11.90 in 2024, from its previous expectation of $11.70 to $11.90.
As of writing, Lowe's was down 1.94% before the market opened.