Lowe’s just nailed it: 69% quarterly profit growth and surging sales that blew past analysts targets. Pumping up revenue: consumers stuck indoors buying goods to repair and paint their homes and grow their gardens.
The home improvement chain reported an eye-popping 34% rise in same-store sales that was nearly triple what Wall Street was expecting. That outpaced bigger rival Home Depot.
Lowe’s benefits more from people staying at home because it has a large base of do-it-yourself customers. Home Depot relies more on sales to professional contractors and handymen whose businesses have only recently begun to pick up.
Analysts say Lowe’s is also geographically well positioned as more people ditch the cities for the suburbs because that’s where a majority of its stores are located.
The company says it sees its sales momentum continuing into August.
Lowe’s shares rose Tuesday morning to hit an all-time high. They’ve jumped by a third this year.