4.5 minutes

Online sales to Pro customers at Lowe's also grew in Q3 as the company looks to revive its overall business.

Lowe’s Companies reported Q3 net sales were down 1.5% from the same period last year, but the retailer still managed to beat analysts’ expectations as online sales grew.

Lowe’s reported results for its third quarter, which ended Nov. 1, 2024, with sales of $20.2 billion. Meanwhile, net income reached $1.70 billion, which was down 4.2%.

“Our results this quarter were modestly better-than-expected, even excluding storm-related activity, driven by high-single-digit positive comps in Pro, strong online sales and smaller-ticket outdoor DIY projects,” said Marvin R. Ellison, Lowe’s chairman, president and CEO, who expressed his sympathy for those impacted by Hurricanes Helene and Milton in the storm-ravaged Southeast.



GreyBar_Articles

Lowe’s is No. 11 in the Top 1000, Digital Commerce 360’s database ranking North America’s biggest online retailers. The retailer is in the Hardware & Home Improvement category. Digital Commerce 360 projects that Lowe’s online sales will reach $11.33 billion in 2024.

Lowe’s web sales by year

Lowe’s online sales in Q3 earnings

In an earnings call, Ellison referenced Pro sales and online sales as two areas of strength. Specifically, he said Lowe’s saw 6% year-over-year sales growth online from the same period last year. The Q3 online sales results continued the growth from Q2, when online sales were up 2.9% from a year earlier. The strong online sales, powered by an increasingly popular mobile app, are helping to offset the softness in the DIY segment, Ellison said.

“We’ve increased both online conversion and traffic, including a double-digit increase in traffic on our Lowe’s mobile app,” Ellison said.

Ellison says paint remains the number one home improvement project that people are participating in and sales have been bolstered by partnering with delivery services that can bring the product the same day.

The in-store mode in the Lowe’s app has also proven popular with customers. The store’s loyalty program has as well, Ellison added.

Digital growth for Pro

Ellison credited digital growth for Lowe’s Pro business as well.

“Digital online for Pro grew double digits as well, and we’re just really pleased with the fulfillment capabilities,” he stated. “So that’s the snapshot of kind of how we performed as well as we did in Q3.”

Looking forward, he sees Pro as a significant part of the turnaround strategy at the company.

“We’re committed to growing Pro at 2x to market because we think that there’s market share, we can continue to gain in the small- to medium-sized Pro, we believe is up for grabs and also it’s a very fragmented marketplace,” Ellison said.

He also noted that Lowe’s plans to discuss “unique tweaks” to its loyalty program at its December investor conference.

Lowe’s plan to return to growth

While the company has faced challenges recently with DIY customers, Ellison cited factors that may contribute to an eventual turnaround.

“Now the reality is that the macro environment puts a lot of pressure on our DIY business because we kind of skew more to that big-ticket DIY discretionary,” he explained. “Think of appliances, think of flooring, kitchen and bath, etc. And so, we are requiring some positive response in the macro environment before we can change these trends the way that we would like.”

Fundamentally, he mentioned two priorities.

“We’re going to continue to invest in Pro and online, and we’re incredibly pleased with what we’ve seen thus far,” he said.

Jason Wingate, CEO of the Toronto-based brand consultancy Emerald Ocean, told Digital Commerce 360 that Lowe’s needs to keep building on its increasingly effective online presence.

“They need to make shopping easier by letting customers move smoothly between online and stores,” Wingate says, adding that simple improvements are often the most effective, such as making sure customers can easily check if items are in stock and pick them up quickly.

Having seen recent performance improvements in its Pro sector, Lowe’s stands ready to build on that success, Wingate believes.

“Professionals bring steady business,” Wingate said. “Lowe’s should keep improving their contractor services with better checkout, support, and bulk pricing. They are gaining ground here, but there’s room to grow.”

Tyler Nalbach, founder of SEO Align, which helps companies grow business online, agrees that Lowe’s can build upon its digital strategy to propel overall growth. Still, he sees Lowe’s as being caught between market leader Home Depot and Menards, which has a smaller market share but a loyal customer base.

Home Depot is No. 4 in the Top 1000. Menards in No. 130.

“I think Lowe’s is in a good position to compete with Home Depot and Menards, but it’s definitely an uphill battle,” Nalbach assessed.

Check back for more earnings reportsClick here to read last quarter‘s article on Lowe’s earnings and online sales.

Do you rank in our databases? 

Submit your data and we’ll see where you fit in our next ranking update.

Sign up

Stay on top of the latest developments in the online retail industry. Sign up for a complimentary subscription to Digital Commerce 360 Retail NewsFollow us on LinkedInX (formerly Twitter)Facebook and YouTube. Be the first to know when Digital Commerce 360 publishes news content.