Lowe’s Same-Store Sales Surge in 30%
Online sales more than doubled for Lowe’s in the third quarter of 2020 — another reflection of pandemic commerce — as same-store sales increased by 30.4%.
Total revenue for the retail chain reached $22.3 billion, up 28.1% year over year.
In the third quarter, Lowe’s invested $245 million in COVID-related support of frontline hourly associates, bringing its total COVID-related associate financial support to more than $800 million this year. The retailer has invested more than $1.1 billion in COVID-related support for its associates, store safety and community pandemic relief through the first nine months of fiscal 2020. For the third quarter in a row, hourly associates at 100% of stores earned their “Winning Together” profit-sharing bonus, which totaled $104 million.
“Strong execution enabled us to meet continued broad-based demand, as we delivered over 15% growth in all merchandising departments, over 20% growth across all geographic regions. and triple-digit growth online,” said Marvin Ellison, Lowe’s president and CEO. “We continued to invest in the future growth of the company, including a $100 million investment in the quarter as part of an ongoing effort to reset the layout of our U.S. stores, making them easier to shop with improved product adjacencies, especially for Pro customers. Our omnichannel transformation continued in the third quarter with further investments in Lowes.com and our supply chain.”
The retailer reported net earnings of $692 million and diluted earnings per share (EPS) of $0.91 for the quarter ended Oct. 30, which included a $1.1 billion pre-tax loss on extinguishment of debt in connection with the company’s third quarter $3.0 billion cash tender offer, compared to net earnings of $1.0 billion and diluted EPS of $1.36 in the third quarter of 2019. Excluding these charges, third quarter adjusted diluted EPS increased 40% to $1.98 from adjusted diluted EPS of $1.41 in the third quarter of 2019.
As of Oct. 30, Lowe’s operated 1,969 home improvement and hardware stores in the United States and Canada representing 208 million square feet of retail selling space.