By Dave Sebastian
Lowe's Cos. said its sales for the recent quarter grew, continuing gains and yielding more online orders during the Covid-19 pandemic, though profit fell because of higher expenses.
The Mooresville, N.C.-based home-improvement retailer on Wednesday posted a profit of $692 million for the third quarter, or 91 cents a share, compared with $1.05 billion, or $1.36 a share, in the comparable quarter last year.
Adjusted earnings were $1.98 a share, meeting expectations of analysts polled by FactSet.
Sales rose 28% to $22.31 billion. Analysts were looking for $21.17 billion. Sales grew 30% for the second quarter.
Sales on Lowes.com more than doubled. Sales in all merchandising departments grew more than 15%, while all regions' sales rose more than 20%, President and Chief Executive Marvin Ellison said.
Comparable sales grew 30.1%, and comparable sales for U.S. home improvement rose 30.4%.
Selling, general and administrative expenses grew to $4.77 billion from $3.77 billion.
During the quarter, the company spent $245 million in Covid-related support for frontline hourly associates, it said.
Lowe's said it expects to buy back $3 billion in stock for the fourth quarter.
Rival Home Depot Inc. on Tuesday recorded a 23% increase in revenue on a higher profit of $3.43 billion.
Write to Dave Sebastian at email@example.com
(END) Dow Jones Newswires