Lowe's reported third-quarter earnings that beat analysts' expectations and revenue that fell short on Wednesday.Since Lowe's CEO Marvin Ellison arrived in July 2018, he has focused his attention on professional contractors, or pro customers.
A Lowe's employee walks through the store during the grand opening of the Lowe's store in San Francisco, California.reported Wednesday quarterly earnings that beat analysts' expectations and raised its forecast for the year. However, revenue during the quarter fell short of expectations.Here's what Lowe's reported compared with what Wall Street was expecting, based on a survey of analysts by Refinitiv:Revenue: $17.39 billion vs. $17.
Since Lowe's CEO Marvin Ellison arrived in July 2018, he has focused his attention on professional contractors, or pro customers., Lowe's credited its ability to grow U.S. same-store sales at a faster pace than its competitor Home Depot to these efforts. Lowe's said it added 35,000 new pro customers last quarter.
Home Depot, however, has always had its stronghold in the professional space. About 45% of Home Depot's business comes from its professional customers, according to Jonathan Matuszewski, an analyst at Jefferies. By comparison, Lowe's gets about 20% to 25% of its sales from this group, he said Tuesday.