As DIY Pulls Back, Lowe’s Reports 7.3% Q3 Sales Decline

Lowe’s, based in Mooresville, N.C., reported a decrease in third quarter revenue.

The company reported total sales for the quarter were $20.5 billion, down from $23.5 billion in the same quarter last year.

Comparable sales decreased 7.4%, due mainly to a pullback in DIY big ticket spending.

Net earnings for the third quarter were $1.8 billion, compared with net earnings of $154 million for the same quarter last year.

In the outlook for the full year 2023, the company said it expects total sales of $86 billion. Comparable sales are expected to be down 5% from last year.

The Bottom Line: Lowe’s sales for the third quarter of 2023 fell about 7% to $20 billion.

What the CEO said: “In the third quarter, the company delivered strong operating performance and improved customer service despite a greater-than-expected pullback in DIY discretionary spending, particularly in bigger ticket categories,” said Marvin Ellison, chairman, president and CEO of Lowe’s.

To give an example, in the conference call this morning, the CEO said that in appliances, they are seeing consumers postponing purchases; instead of buying full kitchen sets they are buying just single unit appliances like refrigerators.

“Given our 75% DIY mix, the DIY pressure disproportionately impacted our third quarter comp performance. At the same time, our investments in pro continue to resonate, resulting in positive Pro comps again this quarter ,” said Ellison.

Lowe’s Companies, Inc. operate more than 1,746 home improvement stores. The CEO noted in the earnings call that they now have Petco stores within Lowe’s stores, among other store-within-a-store concepts.

About Q3 performance, Bill Boltz, EVP of merchandising said during the call: “We’ve added the brands pros want. These investments continue to pay off.” He said, as examples, they delivered results in pro-heavy categories such as roofing and drywall.

Company info: Click HERE to read the full financial report for Q3 2023 from Lowe’s.