Big-Box Q3 Financials Round-Up 

This week, several Big-Box organizations released their Q3 financials, 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.”

Tractor Supply Company released its Q3 2021 financial results, posting a 15.8 percent increase of net sales, which topped $3.02 billion, up from $2.61 billion in Q3 of 2020. Net income increased 17.7 percent to $224.4 million from $190.6 million, and diluted EPS increased 20.4 percent to $1.95 from $1.62 in the third quarter of 2020.

“The third quarter marks our sixth consecutive quarter of double-digit comparable store sales growth. We are once again very pleased with the overall performance of our business, which exceeded our expectations,” says Hal Lawton, Tractor Supply’s president and chief executive officer. “Our outstanding results are indicative of the hard work and dedication of the more than 45,000 team members of Tractor Supply who are successfully navigating the challenging and ever-changing external environment.” 

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.”

Outside the home improvement industry, Walmart saw comp sales grow 9.2 percent and comp transactions were up 5.7 percent. Total revenue for the company was $140.5 billion, up 4.3 percent, negatively affected by approximately $9.4 billion related to divestitures. Walmart’s U.S. inventory was up 11.5 percent in anticipation of another strong holiday spending season. 

“Our momentum continues with strong sales and profit growth globally. Our omnichannel focus is pushing digital penetration to record levels,” says Doug McMillon, president and CEO. “We gained market share in grocery in the U.S., and more customers and members are returning to our stores and clubs around the world. Looking ahead, we have the people, the products and the prices to deliver a great holiday season for our customers and members.”

Target‘s Q3 compared sales grew 12.7 percent and store comparable sales increased 9.7 percent. Total revenue of $25.7 billion grew 13.3 percent compared with last year, driven by total sales growth of 13.2 percent and a 22.3 percent increase in other revenue.

“The consistently strong growth we’re seeing in our business, quarter after quarter, is a testament to the passion and commitment our team brings to serving our guests, and the trust we’ve built with them as a result,” said Brian Cornell, chairman and chief executive officer of Target Corporation. “Following comp growth of nearly 21 percent a year ago, our third quarter comp increase of 12.7 percent was driven entirely by traffic, and reflects continued strength in our store sales, same-day digital fulfillment services and double-digit growth in all five of our core merchandising categories. With a strong inventory position heading into the peak of the holiday season, our team and our business are ready to serve our guests and poised to deliver continued, strong growth, through the holiday season and beyond.”

For a look at how some of these big-box retailers performed in the second quarter of 2021, click here.