investorsHD

inHD

Link copied

Lowe’s Profit Tops Estimates on Online Growth, Sales to Pros.

companies :: 2025-11-20 :: source - bloomberg

By Redd Brown

Lowe’s Cos. reported profit that topped expectations on a pickup in online sales and growth in demand from professional contractors.

Adjusted earnings per share were $3.06 in the third quarter, the company said in a statement Wednesday, compared with the $3.00 estimate of analysts surveyed by Bloomberg.

Most Read from Bloomberg

Lowe’s reported positive same-store sales growth for a second consecutive quarter on strength in its digital channel and in home services. It saw continued growth in sales to professional contractors, a market it has sought to expand in recently.

The company’s shares were up 4.8% at 9:31 a.m. in trading in New York before paring gains. Lowe’s has fallen 11% this year through Tuesday amid a broader consumer pullback.

The results mark a minor bright spot in retailer results this week. On Tuesday, Lowe’s larger peer Home Depot Inc. cut its full-year profit target as consumers pulled back on bigger ticket purchases.

Both retailers are trying to boost sales by courting professionals and growing online sales, but Lowe’s is executing better.

The company saw positive sales growth in appliances, flooring paint and kitchen products with both do-it-yourself and professional customers driving “solid” performance.

The retailer also updated showroom layouts to better utilize its larger store footprints and to give shoppers better access to a greater number of products.

Lowe’s sales growth has now outpaced that of Home Depot for two consecutive quarters, D.A. Davidson analyst Michael Baker wrote in a note to clients. That positive trend has continued into November, Chief Executive Officer Marvin Ellison said in the statement.

“Overall, the US homeowner remains healthy. Balance sheets are strong, and consumers continue to spend,” Ellison said during a call with investors and analysts.

Professional Buildout

Lowe’s helped build out its professional business with the $8.8 billion cash deal to buy drywall company Foundation Building Materials in August. That move deepened its market position with contractors, who tend to buy more and spend more frequently compared to regular consumers.

The company adjusted its full-year profit target to account for the uncertain economic conditions and to include its recently closed acquisition. It now sees earnings, less some items, of approximately $12.25 a share this fiscal year, according to the statement. Previously, it saw $12.20 to $12.45 per share.

“A long-awaited inflection in home-improvement spending has yet to materialize amid increasingly cautious consumers and a stagnant housing market,” Bloomberg Intelligence analyst Drew Reading said in a note. Still, Lowe’s “focus on productivity and investments in e-commerce and pro channels — two areas of strength in the quarter — position it well for a market rebound.”

The company’s online artificial intelligence shopping assistant is now fielding over 1 million customer queries per month and helping drive sales, Ellison said.

Home Depot, the world’s largest home-improvement retailer, said do-it-yourself shopping came in lower than expected last quarter due to weakness in the housing market. Higher interest rates have also meant a slowdown in financing for lucrative, larger projects.

(Updates with executive and analyst commentary throughout.)

Most Read from Bloomberg Businessweek