Lowe's Companies, Inc. (NYSE:LOW) stock started Tuesday on the front foot as it announced robust second-quarter results that were not as bad as market consensus had feared.
Revenue was down 9.2% from the same quarter last year and at US$24.96 billion was a sliver beneath Wall Street forecasts of US$25 billion, though earnings marked at US$4.56 per share was comfortably better than the predicted US$4.50.
Same-store sales were down 1.6%, which was ahead of forecasts that saw a 2.6% drop.
It comes after rival DIY retailer Home Depot last week noted continued challenges in big-ticket sales, while its financials similarly improved upon Wall Street’s modest expectations.
Lowe’s pitched a more positive outlook for its full year, to the end of January, with revenue guidance set in the range between US$97 billion and US$98 billion (which would be 4% to 2% lower than last year), while earnings are projected to range from US$13.20 to US$13.60 per share.
Chief executive Marvin Ellison, in a statement, highlighted Lowe’s growth drive in its professional customer and online segments, and, talked up a recent launch of same-day deliveries and expansion of its rural store locations.
Ellison, more broadly, commented: “We remain confident in the mid-to-long-term outlook for the home improvement industry. “
Lowes meanwhile said it would pay out US$100 million in discretionary and profit-sharing bonuses to its ‘front-line’ workers.
In New York, Lowes stock was up US$5.41 or 2.5% trading at US$223 in premarket dealing.