Lowe's Q2 Earnings Show The Seasonal Products Shoppers Didn't Buy This Summer
Lowe's is the place to go for everything from gardening products to the best holiday decorations, but it's not just the seasonal items that help make the company a leader in the home improvement sector. It's where people go when they want to update their kitchen or choose a new light fixture for their living room.
It's not surprising, though, that the retailer, like many others, has seen changes in its sales patterns, thanks to what its earnings report said is a shortened spring season and changes in consumer buying patterns (via Lowe's). The company reported net earnings of $3 billion, with total sales for the second quarter at $27.5 billion compared to $27.6 billion in the same period in 2021. The company also saw a drop in sales in certain discretionary categories.
What did consumers not buy to create these types of drops in sales? Here's more insight into the sales figures from Lowe's.
Discretionary spending includes a range of products
CNBC reports that Lowe's sales in do-it-yourself customer purchases were lower than normal, which could indicate that consumers were doing fewer upgrades and repairs around their homes. Also notable was a drop in discretionary purchases, which it specifically stated included patio furniture and grills. During the pandemic, more consumers purchased items like freezers, which Lowe's notes had also dropped in sales.
While do-it-yourselfers spent less at the company, Lowes reported more sales to professional contractors, which helped offset the sales change. Also notable was that the number of transactions the company had was down by 6%, but the value of those sales was up by 6.5%. Speaking of this, Marvin Ellison, the CEO of Lowes, stated, "Rather than the DIY consumer trading down like you hear from some retailers, in many cases, we were seeing the opposite." Ellison continued, "The customer's actually trading up to innovation and trading up for new."