Lowe’s Q2 Sales Rise on Strong Performance from Pros and Online Channels
In its second-quarter report released August 19, Lowe's Companies (NYSE:LOW) reported sales of $26 billion, an increase of 8.3% year-over-year despite a modest rise in comparable sales of just 0.2%. The growth was driven by strong performance from professional contractors and online shoppers, while DIY customers pulled back significantly enough to prompt management to revise its full-year guidance downward. Pro contractor sales continued to grow due to digital tools like the MyLowe's Pro Rewards loyalty program and improved planning capabilities. Online sales surged 15.7%, aided by AI-powered assistance through Mylow and enhanced visualization features, with a notable increase in conversion rates for users of this tool. Meanwhile, DIY customer activity declined, marked by a drop in comparable transactions despite slightly higher average ticket sizes. Lowe's adjusted its full-year guidance to $92 billion in sales and $12.25 per share in adjusted earnings due to the slowdown among DIY customers. The company also faced margin pressure from rising fuel costs and inventory challenges, with debt-to-EBITDA at 3.0x versus a target of 2.75x.
Tickers: $LOW
Topics: consumer spending online sales pro contractors retail