Lowe's Steady Third Quarter Shows Growth in Online and Pro Sales

Lowe's Companies reported a stable third quarter performance, focusing on aligning innovative strategies with customer demands while navigating a challenging macro environment. Sales for the quarter were recorded at $20.8 billion with a modest comparable sales increase of 0.4%. This positive trajectory was achieved despite facing a headwind of roughly 100 basis points due to storm-related disruptions from Hurricanes Helene and Milton.

The company's adjusted diluted earnings per share rose by 6% to $3.06, illustrating effective cost management and strong execution of strategic initiatives. Lowe's continued to enhance its digital presence, as evidenced by online sales growth of 11.4%, supported by enhancements in customer experience on its platform and its mobile app.

A key area of success for Lowe's was in the Home Services division, which saw double-digit comparable sales growth. Additionally, Pro sales continue to show resilience, aided by strategic investments in fulfillment capabilities and digital tools, alongside increased loyalty enrollments through the MyLowe's Pro Rewards program.

Lowe's also made significant strides in inventory management, ending the quarter with an inventory level of $17.2 billion, a reduction of approximately $400 million compared to the prior year, demonstrating effective SKU rationalization efforts.

The acquisition of Foundation Building Materials (FBM) in October was a notable development, expanding Lowe's product offering and enhancing its logistics footprint, which further solidifies Lowe's position in the Pro market. Furthermore, gross margin improved by 50 basis points to 34.2%, attributed to better-than-expected credit revenue and efficient inventory management practices.

These accomplishments indicate Lowe's commitment to building robust operational efficiencies while expanding its strategic growth imperatives, including its Total Home Strategy.