Millennials Help Fuel Lowe’s Sales Boom with DIY Home Improvement

8/20/20

By Meredith Dockery, NC Biz News

Lowe’s do-it-yourself (DIY) sales growth outpaced its pro category in the second quarter as millennials purchased materials for home improvement projects during COVID-19 lockdowns.

“Overall, we saw sharp acceleration from Q1 demand trends, including significant increases in the number of new pro and DIY and millennial customers. DIY comps outpaced pro comps in the quarter,” CEO Marvin Ellison said on an earnings call with analysts, according to a transcript.

Ellison added that the home improvement retailer’s DIY business benefitted from “a consumer mindset that was heavily focused on the home and wallet share shifts away from other activities like dining out, vacations and purchasing apparel.”

Lowe’s posted comparable store-sales of 35.1 percent for the second quarter, driven by its DIY category. On the call, Ellison confirmed the DIY comparable sales were closer to 40 percent, while the pro comps were in the mid-20 percent range.

DIY customers purchased supplies, including lumber, tools, and paint, to convert parts of their homes to better suit their current lifestyles for working and studying from home.

“As customers continue to spend more time at home this quarter, we saw an acceleration in both indoor and outdoor project activity, including core repair and maintenance, along with projects to repurpose home space for work and study, as well as discretionary indoor and outdoor projects to increase customers’ enjoyment of their homes,” William Boltz, the executive vice president of merchandising, said on the call.

Shares of Lowe’s (LOW) closed at $158.28 on Wednesday, up 0.23 percent per share.

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