This week, several big-box organizations released their third-quarter earnings numbers, with most reporting continued sales increases in an already successful year.
Lowe’s reported net earnings of $1.9 billion and diluted earnings per share (EPS) of $2.73 for the third quarter. Those numbers reflect a significant jump from the Q3 2020 numbers, which were $692 million in net earnings and a diluted EPS of $0.91. Total sales for the third quarter were $22.9 billion compared to $22.3 billion in the third quarter of 2020, and comparable sales increased 2.2 percent.
“Our momentum continued this quarter, with U.S. sales comps up nearly 34 percent on a two-year basis, as our Total Home strategy is resonating with the pro and DIY customer alike. In the quarter, we drove over 16 percent growth in pro and 25 percent on Lowes.com. We also delivered operating margin expansion by driving productivity through disciplined operational execution and cost management,” says Marvin R. Ellison, Lowe’s chairman, president and CEO. “I would like to thank our front-line associates for their ongoing dedication to outstanding customer service. Looking forward, I remain confident in our ability to drive further market share gains, operating margin expansion and long-term value for our shareholders.”
The Home Depot saw sales of $36.8 billion for the third quarter of 2021, up 9.8 percent from the same period in 2020. Net earnings for Q3 2021 were $4.1 billion, or $3.92 per diluted share, compared with net earnings of $3.4 billion, or $3.18 per diluted share, in the same period of fiscal 2020.
“As evidenced by our strong performance in the quarter, our team continues to do an outstanding job of operating with flexibility and agility,” says Craig Menear, chairman and CEO. “Ultimately, this is what has allowed us to respond to the elevated home improvement demand that has persisted. I would like to extend my sincere appreciation to our team, as well as our supplier, supply chain and transportation partners, as we continue to navigate this dynamic environment together.”
On the paint side, the Sherwin-Williams Company saw net sales increase 0.5 percent to $5.15 billion. Net sales from stores in the U.S. and Canada that have been open more than 12 calendar months decreased 2.8 percent in Q3 because of raw material availability issues. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) decreased in the quarter to $834.2 million, or 16.2 percent of sales.
“Demand remains strong across our pro architectural and industrial end markets; however, results in the quarter were significantly impacted by ongoing and industry-wide raw material supply chain challenges,” says chairman, president and chief executive officer, John G. Morikis. “Consolidated net sales increased less than 1 percent, as raw material availability negatively impacted total sales by a high single digit percentage, of which approximately 75 percent of the impact was in The Americas Group. The raw material availability challenges combined with higher raw material costs significantly pressured gross margins in the quarter.”