Lowe’s, the No.2 U.S. home improvement chain, beat analysts expectations on Wednesday when it reported better-than-expected quarterly profit and sales at stores open at least a year.
The company, much like competitor Home Depot which increased by 5.1%, was helped along by a strengthening housing market.
Homebuilder sentiment hit decade highs in July, August and September, according to the National Association of Home Builders.
Consumers in recent months have spent more on houses, home improvement products, appliances and eating out than on discretionary items such as apparel in the August-October quarter.
Lowe’s says it reported more transactions at a higher value per transaction for the quarter.
Same-store sales rose 4.6% on analyst expectations of 4.1% growth.
Comparable sales at its U.S. home improvement business increased 5%.
Lowe’s shares were up 1.2% at $73.75 in premarket trading on Wednesday.
Lowe’s net income rose to $736 million, or 80 cents per share, in the quarter from $585 million, or 59 cents per share, a year earlier.
Net sales rose 5% to $14.36 billion.