(Bloomberg) — Lowe’s Cos. reported a strong summer sales pace that beat estimates as housebound Americans in every region did more home improvement while cutting back on other discretionary spending.
Same-store sales in the U.S. rose 35.1%, beating the estimate for a 20.5% gain from Consensus Metrix. Lowe’s adjusted earnings per share for the second quarter ended July 31 of $3.75 also beat the average analyst estimate.
Lowe’s Chief Executive Officer Marvin Ellison said all U.S. geographic regions delivered comparable sales growth of at least 30%, meaning sales grew in even the hardest-hit virus regions as Americans looked for do-it-yourself projects. “Looking ahead, our sales momentum continues into August,” he said.The company has been expanding in digital as wary customers prefer to stay home, with sales on its website soaring 135% in the quarter. Faster delivery has been a priority for the company, which said last week it plans to build up its supply chain in order to provide more same-day and next-day service offerings and boost its shipping capabilities over the next 18 months.Stimulus checks to Americans stopped flowing at the end of July, a trend Walmart Inc. cited in its quarterly results Tuesday. Lowe’s didn’t comment on those checks in its release, so analysts will be looking for more detail when its holds its call later this morning.On Tuesday, rival retailer Home Depot Inc. reported sales growth that was more than double the already brisk rate analysts had been expecting — but it also called out rising expenses. Lowe’s reported higher selling, general and administrative expenses as well — up 18% — plus $10 million of pretax operating costs related to its previously announced store closings in Canada.
Shares rose as much as 3.2% before the start of regular trading in New York. They had risen 32% year to date through Tuesday.Get more on the results here.
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