Lowe’s Q2 2024 Earnings Release
Beats Earnings but Decreases Outlook for the Year

As one of the leading names in home improvement retail, Lowe’s second quarter 2024 earnings release was in line with what rival The Home Depot reported last week – homeowners continue to wait on taking on bigger home improvement renovations in favor of smaller, more cost-effective projects. Lowe’s beat second-quarter earnings expectations, but sales fell 5.5%, and comparable same-store sales were down 5.1%. Here are the full details from the call:

Inside the Numbers

  • Lowe’s reported $23.6 billion in sales versus $23.93 billion estimated, while adjusted earnings per share were $4.17 compared to estimates of $3.97. 
  • Comparable same-store sales decreased 5.1% versus the 4.4% decrease that was expected.
  • Lowe’s updated its fiscal-2024 sales to $82.7–83.2 billion, down from $84–85 billion. They also expect comparable same-store sales to fall by 3.5–4% compared to the 2–3% that was estimated. It’s also important to note that fiscal 2024 guidance includes 53 weeks of operating results instead of 52 weeks.

Key Takeaways

  • Homeowners Continue to Focus on Smaller Projects: The economic uncertainty and higher interest rates are pushing consumers to wait on that big remodel and instead focus on smaller projects that don’t require big-ticket items or financing.
  • Growth in Pro Transactions: Comparable same-store sales to Pros were positive, rising by mid-single digits, a indicator that Lowe’s continues to pry some of the Pro market share away from its biggest rival. Currently, only one-quarter of Lowe’s revenue is from Pros, while The Home Depot’s is half.
  • Soccer Legend Partnership: Lowe’s recently partnered with international soccer star Lionel Messi to help win over soccer-enthusiast consumers. This partnership was specifically promoted for the MyLowe’s Rewards loyalty program for homeowners and the MVPs Pro Rewards loyalty program for Pros.

Product Category News

  • Appliances: Appliances were a small positive for the quarter, with MrCool and their ductless mini-split AC systems of particular note.
  • Paint: Lowe’s features a partnership with Sherwin-Williams for free same-day delivery, a huge benefit for both the DIYer and the Pro who’s on the jobsite. No more worrying about running out of paint during a job!
  • Outdoor Power Equipment: Unfavorably warm weather was a big reason for the decrease in comparable same-store sales, but Lowe’s added Toro to their already impressive product lineup for some added star power.
  • Hand Tools: By extending the Kobalt proprietary line of hand tools and introducing the Klein KNECT impact tool system, the hand tools category is primed for even more growth for the rest of 2024.

Remember, this analysis is based on publicly available information and represents our interpretation of the data. We encourage you to conduct your own research and analysis to develop marketing strategies best-suited for your specific brand and target audience.

At Porchlight, we partner with home improvement brands to develop and implement strategic marketing campaigns that drive results. Contact us today to discuss how we can help your brand navigate the evolving market landscape and achieve its marketing goals.

By providing insights and thought leadership, we empower home improvement brands to make informed decisions and thrive in a dynamic market. So, stay tuned for more industry analysis and marketing tips from Porchlight!

Additional Resources

Like What You’re Seeing? Want More?