Lowe’s (NYSE:LOW) on Wednesday blew past Wall Street forecasts with a 30% surge in revenue and 68.7% jump in profit as consumers shifted spending from restaurants and travel to home improvement projects during the coronavirus pandemic.
Lowe’s profits soared 68.7% to $2.83 billion, or $3.74 per share, up from $1.68 billion, or $2.14 per share, a year earlier even as it spent more money to keep employees at work and safe during the pandemic.
The company said it spent $460 million during the quarter on higher pay for hourly workers, store safety and supporting communities. It also will pay out a record quarterly bonus of $107 million to employees at all of its locations for surpassing its targets.
Excluding the impact of restructuring its Canadian business, the retailer earned $3.75 per share, beating the $2.95 per share expected by analysts.
Net sales rose 30% to $27.3 billion, topping expectations of $24.27 billion. The company reported same-store sales growth of 35.1% for its U.S. home improvement business, and Lowe’s website sales soared 135% as the pandemic pushed more customers to shop online.
"Sales were driven by a consumer focus on the home, core repair and maintenance activities, and wallet share shift away from other discretionary spending," CEO Marvin Ellison said in a statement.
Lowe’s did not provide an update on its 2020 forecast, which was withdrawn in May, but said that its sales momentum is continuing into August.
LOW shares hurtled higher $1.44 to $159.35.
