Home improvement retailer Lowe's (LOW, Financial) has increased its annual comparable sales forecast due to enhanced quarterly revenue driven by hurricane impacts, despite ongoing pressure from large expenditures. In the third quarter, Lowe's reported sales of $20.17 billion, a 1.5% decrease from last year, but still surpassing market expectations. The non-GAAP earnings per share stood at $2.89, also exceeding predictions.
Lowe's comparable sales dropped by 1.1% during the third quarter, outperforming analysts' forecast of a 2.86% decline. In comparison, competitor Home Depot (HD) recently revealed a 1.3% decline in its third-quarter comparable sales, better than the anticipated 3.3% fall. Home Depot noted increased demand for building materials and paint, fueled by rebuilding efforts post-hurricane.
Hurricanes Helen and Milton wreaked havoc in parts of the U.S., including Florida and North Carolina, causing significant damage to homes, bridges, power infrastructure, and crops. Despite these challenges, Lowe's CEO Marvin Ellison highlighted that their third-quarter performance slightly exceeded expectations, thanks to high single-digit growth in their Pro segment, robust online sales, and small-scale outdoor DIY projects.
For 2024, Lowe's now anticipates a comparable sales decline of 3% to 3.5%, an improvement from the previous estimate of a 3.5% to 4% decrease. The company also projects adjusted earnings per share for 2024 to be between $11.80 and $11.90, up from the earlier forecast of $11.70 to $11.90. As of the latest update, Lowe's shares dipped by 1.94% in premarket trading.
