It’s not a misprint: Lowe’s reported second-quarter U.S. comp-store sales of positive 35.1% for a quarter where home centers saw a dramatic increase in share of wallet from socially distanced home owners.
The results come one day after rival Home Depot’s earning report that included a 25% comp-store sales gain.
"We delivered very strong second quarter results, with all merchandising divisions posting comparable sales growth exceeding 20% and all U.S. geographic regions delivering comparable sales growth of at least 30%,” said CEO Marvin Ellison.
Total sales for the second quarter were $27.3 billion, up from $21.0 billion in the second quarter last year. Net earnings of $2.8 billion marked a 68% increase over $1.7 billion in the prior year quarter.
As in the case of Home Depot, the Lowe’s performance beat Wall Street expectations on several fronts. Also as in the case of Home Depot, Lowe’s pointed to investments in technology and operational platforms as a key to its growth.
“Looking ahead, our sales momentum continues into August, and we are investing in the business to further our omnichannel capabilities and position,” Ellison said.
The three months ended July 31 coincided with efforts to mitigate the coronavirus. The company pointed to an investment o $560 million through the first half of 2020 in COVID-related financial support for its employees and $100 million in community pandemic relief.
At the end of the second quarter, Lowe’s operated 1,968 stores, down from 1,970 at the end of the first quarter.
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Bottom line: The company achieved $2 billion in quarterly net earnings for the first time, and came within sight of the $3 billion mark. Q2 earnings were $2.828 billion.
For more: The Lowe’s Q2 earnings release is here.