Lowe’s Profit Soars on Surging Pro & DIY Demand—Outlook Skyrockets

Retail giant crushes earnings as contractors and weekend warriors fuel unprecedented demand surge.

DIY Revolution Meets Pro Power

Home improvement isn't slowing down—it's accelerating. Lowe's just posted staggering profit growth driven by both professional contractors and a relentless wave of DIY enthusiasts. The numbers don't lie: demand is through the roof.

Outlook Gets Major Upgrade

Management isn't just optimistic—they're raising guidance across the board. Because when your core customers can't stop spending, why wouldn't you? (Wall Street analysts, meanwhile, are already pricing in the eventual slowdown—because that's what they do best.)

Bottom line: In a world of speculative assets and overhyped tech plays, sometimes the real money's made in hammers and nails. Who knew?

Key Takeaways

• Lowe's earnings exceeded forecasts on higher sales to both construction professionals and DIY customers.
• The home-improvement retailer raised its guidance on benefits from the purchase of Artisan Design Group.
• Lowe's also announced the $8.8 billion acquisition of Foundation Buildings Materials.

Lowe's (LOW) shares edged higher Wednesday after the home-improvement retailer beat profit estimates as both contractors and do-it-yourself (DIY) customers spent more for its products. In addition, the company boosted its guidance following the closing of its acquisition of interior finishes provider Artisan Design Group (ADG).

Lowe's reported second-quarter adjusted earnings per share (EPS) of $4.33, while analysts surveyed by Visible Alpha were looking for $4.24. Revenue ROSE 1.6% year-over-year to $23.96 billion, a tick short of forecasts.

Comparable store sales were up 1.1%, in line with expectations. CEO Marvin Ellison said those were driven by a "solid performance" from both its construction professional and DIY businesses. 

Lowe's explained that with the addition of ADG, it was raising its full-year outlook for sales to $84.5 billion to $85.5 billion from the earlier prediction of $83.5 billion to $84.5 billion. Yesterday, rival Home Depot (HD) affirmed its guidance as it saw demand growing.

The company also announced it moved to increase sales to construction pros by purchasing Foundation Building Materials (FBM) for $8.8 billion. Lowe's called FBM "a leading North American distributor of interior building products" that serves "large residential and commercial professionals in both new construction and repair and remodel applications."

Shares of Lowe’s are up about 5% this year.

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