Lowe’s Unveils Q3 Earnings: Signs of a Home Improvement Market Comeback

Third-quarter 2024 financial results were better than anticipated for Lowe’s. The home improvement retailer brought in $20.17 billion in revenue, topping analysts’ projections of $19.93 billion.

However, down 1.1% were same-store sales, which was still an improvement compared to earlier predictions of a 2.7% decline. Net income in the period that ended Nov. 1 was $1.7 billion, slightly lower than the $1.77 billion reported in Q3 2023.

“Our results this quarter were modestly better-than-expected, even excluding storm-related activity, driven by high-single-digit positive comps in Pro, strong online sales and smaller-ticket outdoor DIY projects,” Lowe’s CEO Marvin Ellison said in the earnings report.

Sales for the year will likely land between $83 billion and $83.5 billion, a 3%-3.5% uptick over 2023 figures. This is significantly better than the previous guidance suggesting a 3.5% to 4% loss for 2024.

Lowe’s Expects the Home Improvement Market To Recover

Lowe’s is hoping the home improvement market will ultimately come back to life. For now, consumers remain cautious about spending on DIY projects like kitchen and bathroom renovations. As costs for borrowing money come down and inflation takes less of a toll, company leadership expects demand for construction supplies will return to normal, but it has not come back just yet.

“We’ve not seen any real material, sustained movement, due to the decline in interest rates, but again, we know that it will come on the horizon,” said Ellison, per CNBC. “It’s just a matter of time.”

Next month, Lowe’s is hosting its Analyst and Investor Conference. Ellison said “new growth and productivity initiatives” will be discussed, which will help the company position itself to take advantage as the home improvement market eventually recovers.

Lowe’s rival Home Depot also saw a jump in sales revenue in Q3 and upgraded its annual outlook. Sales rose 6% in the quarter compared to the same period last year. For the full year, Home Depot anticipates a 4% jump in sales.