Lowe's Companies receives boost from natural disaster fall-out

It’s an ill wind that blows nobody any good, and retailer Lowe’s Companies Inc (NYSE:LOW) proved that by receiving a boost from hurricane-related purchases.

Fiscal third quarter sales topped the market’s expectations, with like-for-like (LFL) sales – which compares sales at stores that have been open for at least a year – up 5.7%, versus expectations of a 4.6% increase.

Revenue of US$16.77bn was ahead of Wall Street’s consensus forecast of US$16.59bn.

The home improvements retailer said it benefited from customers turning up to their stores to repair damage caused by hurricanes or wildfires.

The company said it still expects full-year sales to be up by 5.5% year-on-year and LFL sales to be up 3.3%.

Net income rose to US$872mln from US$379mln the year before, and was equivalent to US$1.05 a share (2016: 43 cents), which was ahead of the consensus forecast of US$1.02 a share.

“During the third quarter, we drove traffic in-store and online with compelling messaging and integrated customer experiences. We continue to invest in omni-channel capabilities to enhance value for customers and shareholders,” said Robert Niblock, Lowe’s chairman, president and CEO.

“I am also pleased with the progress we’ve made to enhance our product and service offering for the Pro customer, delivering another quarter of comparable sales above the company average,” he added.

Shares in Lowe’s were down 1.7% in pre-market trading at US$80.05. 

Story by ProactiveInvestors