Lowe’s Inc. Revenue Soars 77%, Bolstered By Pandemic-Fuelled Demand

Summary

• The home improvement company recorded revenue of US$2.3 billion in Q1.
• Sales surged 25.9% to US$24.4 billion, aided by pandemic-fuelled demand.
• Lowe’s also had repurchased 16.8 million shares and paid US$440 million in dividends in Q1.

The home improvement retailer Lowe’s Companies Inc. (NYSE:LOW), on Wednesday, May 19, posted revenue growth of 76.9% to US$2.3 billion in the first quarter ended April 30, 2021. Its net earnings were US$1.3 billion in the same period of 2020.

Its diluted earnings per share (EPS) was US$3.21 during the period, compared with diluted EPS of US$1.76 in the corresponding period of 2020. Total sales increased 25.9% to US$24.4 billion, compared to US$19.7 billion in Q1 of 2020.

However, the stock was down 2.41% from the previous close to US$188.245 at 9.22 am ET on Wednesday following the quarterly results.

Rising demand for home improvement items during the pandemic when people relatively had more time for renovation works boosted its sales. The stimulus checks ensured they also had adequate cash to spend.

Its rivals, like Home Depot, also has reported strong growth during the period, and investors were anticipating a similar result.

Source: Pixabay.

Also read: Home Depot Revenues Soar 84%, Sales Up 32.7% In Q1

Lowe’s Q1 Highlights

Total sales rose 25.9% to US$24.4 billion, compared with US$19.7 billion in the same quarter of 2020. All of Lowe’s stores have offered profit-sharing bonuses, amounting to US$152 million, to their associates this year, which was above the target of US$70 million. 

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Lowe’s operations in the US and Canada?

Lowe’s has stores across the US and Canada, covering a total area of over 208 million square feet. Since its inception in 1972, its company-owned dealers rose to 230, which employs 300000 associates.

Its total sales for the fiscal year 2020 was US$89.6 billion. Lowe’s, Fortune 500 company, has a market capitalisation of US$138 trillion and serves over 20 million clients across the US and Canada.

Lowe’s also had repurchased 16.8 million shares for US$3.1 billion and paid US$440 million in dividends in Q1.

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Reacting to Lowe’s strong Q1 performance, CEO Marvin Ellison said the company could significantly expand its operating margin, driven by robust growth in sales. He lauded the front-line associates for the company’s impressive performance.

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