MOORESVILLE – Lowe’s top executive Marvin Ellison delivered some good news to the home improvement firm’s “front line” employees early Wednesday.
They’ll be getting a bonus.
“To help our hourly front-line associates during this period of high inflation, we are awarding an incremental bonus of $55 million,” the chairman and CEO announced as the company disclosed its latest quarterly earnings.
Lowe’s (LOW) reported fiscal second-quarter net income of $2.99 billion.
On a per-share basis, the Mooresville-based company said it had net income of $4.67.
The results beat Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $4.63 per share.
The home improvement retailer posted revenue of $27.48 billion in the period, which fell short of Street forecasts. Eleven analysts surveyed by Zacks expected $28.2 billion.
Lowe’s expects full-year earnings to be $13.10 to $13.60 per share, with revenue in the range of $97 billion to $99 billion.
In a statement, Ellison tnoed that DIY (do it yourself) sales “disproportionately impacted” results.
The company noted that sales dipped year-over-year to $27.5 billion compared to $27.6 billion in the second quarter of 2021.
“I am pleased that our team drove operating margin improvement and effectively managed inventory despite lower-than-expected sales – a clear reflection of our relentless focus on operating discipline and productivity,” Ellison explained.
“Our results in the first half were disproportionately impacted by our 75% DIY customer mix, which was partially offset by our double-digit Pro growth for the ninth consecutive quarter. Despite continued macro uncertainty, we remain confident in the long-term strength of the home improvement market and our ability to take share. To help our hourly front-line associates during this period of high inflation, we are awarding an incremental bonus of $55 million. I’d like to thank our associates for their continued hard work and dedication.”
Read the full financial report online.
