Shoppers wearing protective masks wait in line to enter a Lowe’s Cos. store in San Bruno, California, U.S., on Wednesday, May 20, 2020.
David Paul Morris | Bloomberg | Getty Images
Lowe’s said Wednesday that its fourth-quarter same-store sales climbed 28.1%, as consumers continued to spend money on home projects during the pandemic.
That’s higher than the 22% growth that analysts expected, according to StreetAccount.
Shares of the company were up less than 1% in premarket trading.
Here’s what the company reported for the quarter ended Jan. 29 compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:
- Earnings per share: $1.33, adjusted, vs. $1.21 expected
- Revenue: $20.31 billion vs. $19.48 billion expected
Lowe’s reported fourth-quarter net income of $978 million, or $1.32 per share, up from $509 million, or 66 cents per share, a year earlier.
Excluding items, it earned $1.33 per share, exceeding the $1.21 per share expected by analysts surveyed by Refinitiv.
Net sales rose to $20.31 billion, outpacing analysts’ expectations of $19.48 billion.
Sales at its U.S. stores open at least a year and online grew by 28.6% in the quarter.
Lowe’s CEO Marvin Ellison said in a press release that the company saw high demand across the board. It had sales growth of 16% in all merchandising departments and of more than 19% in all regions of the country. Online sales grew by 121% in the quarter, he said.
Lowe’s reiterated its prior forecast. At an investor day in December, Chief Financial Officer David Denton said home improvement sales will likely decline in 2021 as more people get Covid-19 vaccines and spend more time outside of their homes. He said the retailer’s outlook for 2021 anticipates a between 5% and 7% drop in demand for the home improvement sector on a mix adjusted basis.
The company said it spent over $100 million in the fourth quarter and more than $900 million for the year on additional Covid-related pay and benefits for employees. It said it spent nearly $1.3 billion in pandemic-related expenses, including higher wages and store safety measures in the fiscal year.
As of Tuesday’s close, Lowe’s shares are up nearly 35% over the past year. The company’s market value is $123.53 billion.
Read the complete press release here.
This story is developing and will be updated.