Lowe’s Rolls Out Solid Home Improvement Forecast

Lowe’s fiscal 2021 fourth-quarter earnings reflect optimism about the home improvement sector and consumers’ willingness to continue doing it themselves, even as the restrictions related to the COVID-19 pandemic continue to ease, according to the company’s announcement Wednesday (Feb. 23).

Demand for tools and building materials and spending on do-it-yourself home projects has remained strong, with builders and handymen upgrading their toolkits as they push to finish the projects that were delayed as the coronavirus kept people quarantined for the better part of 2020.

Lowe’s same-store sales rose 5% in the fourth quarter ended Jan. 28 and the company expects its fiscal year 2022 total sales to be in the range of $97 billion to $99 billion, compared to a previous forecast of $94 billion to $97 billion.

“We delivered another year of outstanding performance in 2021, as we gained market share across DIY and Pro through our Total Home strategy,” said Marvin R. Ellison, Lowe’s chairman, president and CEO, in the company announcement.

“We remain confident in the long-term strength of the home improvement market, and our ability to expand operating margin,” he said.

Lowe’s awarded a discretionary year-end bonus of $265 million in the fourth quarter of 2021 to front-line associates in recognition of their hard work during the pandemic in 2021. For the eighth consecutive quarter, 100% of Lowe’s stores earned a Winning Together quarterly profit-sharing bonus of $94 million to front-line hourly associates, $24 million above the target level.

Related: Home Depot Touts Agility in Ever-Changing Economic Landscape

On Tuesday (Feb. 22), The Home Depot reported its fourth quarter and fiscal 2021 full-year results, including a 10.7% growth in sales for Q4 to $35.7 billion and an 8.1% jump in comparable sales for the quarter.

Home Depot’s full-year sales for fiscal 2021 were $151.2 billion, up $19 billion (14.4%) from fiscal 2020. Comparable sales for fiscal 2021 jumped 11.4 percent for the year and comparable sales in the U.S. were up 10.7%.