High value spending increases online sales and inventory skyrockets

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Buyers will load boxes of merchandise onto trucks after visiting a Lowe hardware store in Philadelphia, Pennsylvania, United States on November 4, 2020. REUTERS / Mark Makela

August 18 (Reuters) – Lowe’s Cos Inc (BAS.N) Professional builders and DIY enthusiasts flocked to the store on Wednesday, saying it had boosted sales and increased its share by 11% as demand from top DIY customers in home improvement chains declined.

The deployment of the COVID-19 vaccine in the United States in recent months has opened the door for professional contractors to complete maintenance, repair and upgrade work pending by customers in the event of a pandemic. paddy field.

As a result, sales of high-priced products such as construction equipment and materials increased, offsetting surging paint sales and sluggish garden tools on the return to Japan.

This increase in demand from “professional customers” has helped retailers report a 21% increase in second-quarter sales for the segment and forecast annual revenues above Wall Street estimates. paddy field.

Rowe’s forecast sales to business customers, which could account for up to a quarter of the business, remained strong for the remainder of the year and were optimistic that DIY demand would not decline entirely. ..

“From a DIY perspective, I think demand will ease a bit, but it won’t fall,” CFO David Denton said on the analyst’s phone.

Loews said he expects total sales for fiscal 2021 to be around $ 92 billion, compared to analysts’ estimates of $ 91.58 billion.

The impact of the delta variant of the coronavirus on home improvement space injected some uncertainty into Denton’s forecast, but added that sales trends so far in August have been strong.

Rowe’s same-store sales fell 1.6% in the second quarter, below analysts’ expectations of 2.2%, according to Refinitiv IBES data.

Biggest rival home deposit (HD.N) Reported an unexpected slowdown in US sales on Tuesday. Read more

The company’s second quarter net earnings per share were $ 4.25, higher than the estimate of $ 4.01 per share.

Reported by Uday Sampath in Bangalore. Edited by Vinay Dwivedi

Our criteria: Thomson Reuters Trust Principles.

High value spending increases online sales and inventory skyrockets

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