Lowe's punts on hurricane repair demand after upbeat Q3 results

19th Nov 2024 12:17

(Sharecast News) - US home improvement retailer Lowe's lifted full-year guidance on Tuesday, betting on more spending from people hit by recent hurricanes.

The company also reported better-than-expected third-quarter profit, driven by strong demand in the DIY and online channels.

It now expects total sales of between $83bn - $83.5bn, compared with the previous forecast of $82.7bn to $83.2bn.

Comparable sales were tipped to fall to 3 - 3.5%, better than the 3.5 - 4% drop previously expected.

For the third quarter, adjusted earnings per share came in at $2.89 against the expected $2.82, while revenue was $20.17bn compared with the forecast $19.95bn.

Lowe's is pinning its hopes on higher sales in the current quarter from customers repairing their homes after damage from hurricanes Helene and Milton, which smashed through Florida and North Carolina, causing extensive damage.

"Our results this quarter were modestly better than expected, even excluding storm-related activity, driven by high-single-digit positive comps in Pro, strong online sales and smaller-ticket outdoor DIY projects," said chief executive Marvin Ellison.

Reporting by Frank Prenesti for Sharecast.com