Lowe’s Q3 2024 earnings release was comparable to what their rival The Home Depot reported last week – increased sales but a caution against falling sales, particularly for bigger remodeling projects as consumers are waiting because of higher interest rates. But outdoor DIY projects, the Pro business, hurricane recovery efforts and strong online shopping numbers all led to increased sales. Here are the full details from the call:
Inside the Numbers
- Lowe’s reported $20.2 billion in sales versus $19.9 billion estimated, while adjusted earnings per share were $2.89 compared to estimates of $2.82.
- Comparable same-store sales decreased 1.1%.
- Lowe’s updated its fiscal-2024 sales to $83–83.5 billion, up from $82.7–83.2 billion. They also expect comparable same-store sales to fall by 3–3.5% compared to the 3.5–4% 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
- Online Sales Were a Big Contributor: Stronger-than-expected online shopping sales played a big role in a better-than-expected quarter.
- Continued Pro Business Growth: The Pro business continues to be a big focus for Lowe’s as they look to gain market share from Home Depot. Lowe’s hopes the loyalty rewards program that’s aimed at Pros keeps growing and becomes Pros’ go-to loyalty program.
- Loyalty Rewards Programs Were Big Hits: Both MyLowe’s Rewards (DIYers) and Lowe’s MVPs Pro Rewards (Pros) used various partnerships and marketing opportunities to drive success.
Product Category News
- Wal-Board Drywall Tools: A new addition to the Lowe’s product lineup, Wal-Board offers a complete line of all the tools needed for efficient drywall work.
- Pella Steady Set Windows: This unique product line allows the setting of windows from the interior, reducing dangerous ladder work. This is a great selling point for the millwork department and will drive bigger ticket projects as more consumers learn about it.
- Home Décor: Products related to home décor continued to struggle a bit as high interest rates and an uncertain economy cause customers to delay these bigger types of home improvement projects.
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.
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Additional Resources
Lowe’s Q3 2024 Earnings Report: https://corporate.lowes.com/sites/lowes-corp/files/2024-11/q3-2024-earnings-release.pdf