Lowe's posts 3.0% U.S. comps growth

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Lowe's posts 3.0% U.S. comps growth

By HBSDealer Staff - 11/20/2019
Overshadowed by its plans to close 34 underperforming stores in Canada, Lowe’s reported a third-quarter comp-store sales of positive 3.0% for its U.S. home improvement business.

Net sales for the quarter were $17.388 billion, down slightly from $17.415 billion in the same quarter last year.

Looking ahead, Lowe’s says it expects full year sales to increase about 2%, and comparable store sales to increase about 3%.

CEO Marvin Ellison said he was pleased with the performance of the company’s U.S. stores. The performance reflected a “solid macroeconomic backdrop and continued progress in our transformation driven by investments in customer experience, improved merchandise category performance, and continued growth of our pro business,” he said.

The company’s bigger news involved plans to close 34 stores in Canada.

Lowe’s third quarter release followed by one day the similar release from its major rival Home Depot. In the third quarter, Home Depot posted U.S. comp-store sales growth of 3.8%, compared to 3.0% for Lowe’s.

Lowe’s also said it is raising its adjusted earnings per share and adjusted operating income guidance for 2019.

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Bottom line: Lowe’s net earnings were $1.05 billion in the third quarter, up nearly 67% from earnings of $629 million in the same quarter last year.

What the CEO said: “Although we still have work to do, I am confident we are on the right path to build a better Lowe’s and generate long-term profitable growth,” said Ellison. “We are committed to the Canadian market and are taking decisive action to improve the performance and profitability of our Canadian operations. We also have a detailed roadmap and a very experienced team in place to repair our Lowes.com business. As we enter the fourth quarter, we are building strong momentum in the U.S. and are well-positioned to deliver strong topline performance, while also driving margin improvement and operational efficiency.”

More on Lowe's: Read about Lowe’s Canadian shakeup here. Also, the company’s full Q3 financial release is here.