Lowes – COOPER GENERAL NEWS

Shoppers wearing protective masks wait in line to pick up a store from Lowe’s Cos on Wednesday, May 20, 2020. To be entered in San Bruno, California, USA.

David Paul Morris | Bloomberg | Getty Images

Lowe’s said Wednesday that sales in the same store rose 28.1% in the fourth quarter as consumers continued to spend money on home projects during the pandemic.

This is higher than the 22% growth forecast by analysts, according to StreetAccount.

The company’s shares rose less than 1% in premarket trading.

The company reported for the quarter ended Jan. 29, relative to Wall Street expectations, based on an analyst survey conducted by Refinitiv:

Earnings per share: $ 1.33, adjusted versus expected $ 1.21
Revenue: $ 20.31 billion versus $ 19.48 billion expected

Lowe reported net income of $ 978 million, or $ 1.32 per share, for the fourth quarter compared to $ 509 million, or 66 cents per share, a year earlier.

Excluding items, the company earned $ 1.33 per share, beating the analysts polled by Refinitiv, which was forecasting $ 1.21 per share.

Net sales rose to $ 20.31 billion, beating analysts’ expectations of $ 19.48 billion.

Sales in its US stores were open for at least a year and online sales were up 28.6% for the quarter.

Marvin Ellison, CEO of Lowe, said in a press release that the company was seeing high demand across the board. Sales growth was 16% in all merchandising departments and more than 19% in all regions of the country. Online sales rose 121% in the quarter.

Lowe’s repeated his previous prediction. On an investor’s day in December, CFO David Denton said home improvement sales are likely to decline in 2021 as more people get Covid-19 vaccines and spend more time outside their homes. He said the retailer’s outlook for 2021 is for a mix-adjusted decline in home improvement demand of between 5% and 7%.

The company said it spent over $ 100 million and more than $ 900 million on additional Covid-related compensation and benefits for employees in the fourth quarter. It said it spent nearly $ 1.3 billion on pandemic-related spending, including higher wages and business security measures during the fiscal year.

At the close of trading on Tuesday, Lowe’s shares were up nearly 35% over the past year. The company’s market value is $ 123.53 billion.

Read the full press release here.

This story evolves and is updated.

Customers support Lowes Hardware Store in Farmingdale, New York on May 20, 2020.

Bruce Bennett | Getty Images

Lowe’s said Wednesday that it expects sales to grow about 22% over the next year as its turnaround efforts gain momentum and the popularity of home improvement projects receives a boost during the coronavirus pandemic.

Revenue in the same store is expected to grow about 23% over the same period, helping the company earn between $ 7.53 and $ 7.63 per share. After adjustments, Lowe projects earnings of $ 8.62 to $ 8.72 per share.

Speaking at an investor meeting, Lowe CEO Marvin Ellison said the company will pursue a “total home” strategy as it expands its strategy A selection of products that homeowners and home professionals need, from kitchen appliances to home decor, and provide a better customer experience.

He highlighted the investments and improvements Lowe’s already made in brick and mortar and digital businesses. A loyalty program was launched among them to attract more business from home professionals such as electricians and building contractors. The website has been redesigned to simplify navigation and better handle data traffic. In addition, new digital fulfillment options have been added, such as: B. Roadside pickup and in-store lockers.

“Our commitment to retail fundamentals was critical to our financial success in 2020,” he said. “Our supply chain, in-store and digital systems would have collapsed under the weight of the unprecedented customer demand created by the pandemic without that focus.”

Still, he added, “The best days at Lowe are ahead of us,” as the company turns its attention to entering the home improvement market, valued at approximately $ 900 billion.

Dave Denton, Lowe’s chief financial officer, said his efforts over the coming months would increase the company’s revenue per square foot. He said it expects to reach $ 423 per square foot by the end of this year and will increase its target to $ 460 for the future.

“2020 was a pivotal year for the company,” he said. “We are taking market share earlier than expected and making the right investments for future growth.”

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