Shares ofLowe’s Companies (NYSE:LOW)popped 9.6% on Wednesday after the home improvement retailer delivered solid second-quarter results.
Lowe’s total sales rose 1% year over year to $27.6 billion. That was above Wall Street’s estimates for revenue of $26.9 billion.
The better-than-expected performance was driven by robust growth in Lowe’s professional and installation services. Sales in those segments increased 21% and 10%, respectively. A 7% rise in e-commerce sales also contributed to the gains.
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Lowe’s Companies is winning more business from professional contractors. Image source: Getty Images.
“Our strong results this quarter demonstrate that our Total Home strategy is working, withU.S.sales comps up 32% on a two-year basis,” CEO Marvin Ellison said in a press release.
Better still, the company’s productivity initiatives are helping Lowe’s become more profitable as it expands its revenue base. Its adjusted earnings, in turn, jumped 13% to $4.25 per share. That, too, bested analysts’ expectations, which had called for earnings per share of only $4.01.
These results prompted management to boost its full-year sales forecast from $86 billion to $92 billion. Lowe’s also expects its operating margin to improve to 12.2%, up from 10.8% in 2020.
“Looking forward, I am confident in the positive outlook for our industry, and our ability to drive operating margin expansion and market share gains,” Ellison said.
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