Lowe’s expecting to end this year with higher sales amid hurricane impacts
After Hurricane Helene ripped through the Southeast and North Carolina in late September, the destruction is still continuing to impact the bottom line of victims and companies like Lowe’s.
This year was the largest storm recovery effort for the home improvement giant, based in the Charlotte region, said CEO Marvin Ellison on Tuesday about Helene.
Hurricane Milton also wreaked havoc after it struck Florida two weeks later in October. Lowe’s pledged $12 million to help with disaster relief through nonprofit organizations. Another $2.5 million in grants are going to help small businesses in Western North Carolina recover from the tropical storm on Sept. 27.
Ellison and associates spoke about the company’s storm contributions during the third quarter earnings conference call.
“I’d like to extend my heartfelt sympathy to those who suffered losses from Hurricanes Helene and Milton,” Ellison said in a statement. “I would also like to express my appreciation for our associates, suppliers and first responders for their commitment to the impacted communities.”
Lowe’s employees volunteered and used company supplies to help communities clear mud and debris from the storms, the company said.
Third Quarter results
Lowe’s reported net earnings of $1.7 billion. Total sales in July, August, and September were $20.2 billion, compared to $20.5 billion in the prior-year quarter.
Comparable sales for the quarter decreased by 1.1%. This was due to low sales related to expensive Do-It-Yourself purchases for home repairs. The decrease was partially offset by storm-related sales and purchases made by professional builders and online customers.
Lowe’s had modestly better-than-expected results for the third quarter, even excluding storm-related activity, Ellison said. Online sales and customers buying smaller-ticket outdoor DIY projects were a part of the results.
The company is expecting to end 2024 with sales between $83 billion and $83.5 billion. This is higher than the previous forecast of $82.7 billion to $83.2 billion.
Lowe’s is the second-largest home improvement retailer in the U.S. behind Home Depot. The Mooresville-based company operates more than 1,700 stores and employs 300,000 workers, including 11,000 in the Charlotte region.
