Lowe's shares dropped after its earnings fell just short of estimates, despite massive sales growth
AP Photo/LM Otero
- Lowe's reported Wednesday quarterly same-store sales growth of more than 30%.
- Sales for the third quarter were $22.3 billion, compared to $17.4 billion in the same quarter in 2019.
- Online sales doubled in the third quarter, Lowe's said.
- However, the company's earnings of $1.98 per share were one cent short of estimates from analysts, and its shares fell.
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Home improvement retailer Lowe's reported Wednesday quarterly same-store sales growth of over 30%, as well as a doubling of online sales.
More people have carried out DIY and invested in their homes during the coronavirus pandemic, attracting more shoppers to Lowe's stores.
Sales for the third quarter were $22.3 billion, compared to $17.4 billion in the same quarter in 2019. This beat expectations of $21.25 billion.
However, Lowe's net income fell to $692 million, or 91 cents per share, for the quarter ending October 30, 2020. This is compared to $1.05 billion, or $1.36 per share, in 2019.
The company earned $1.98 per share, which is excluding a $1.1 billion pretax loss on extinguishment of debt. This was one cent short of estimates from analysts, based on Refinitiv data.
During the COVID-19 pandemic, the company pumped a lot of money into its online business and gave bonuses to employees. Lowe's said it had invested $245 million into COVID-19 support for hourly staff.
Lowe's shares fell about 6% in premarket trading.
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