Image copyright Getty Images Image caption Lowe’s chief exec Robert Niblock received nearly £10m in the last year
Lowe’s shares have surged more than 10% after the home improvement retailer announced an upbeat third quarter.
The company’s net income fell from $356m (£252m) in the third quarter of 2017 to $323m.
But the company beat analysts’ expectations and raised its earnings guidance for the year.
Meanwhile, its CEO Robert Niblock received nearly £10m in 2018, with the majority of it coming from a share options program.
Lowe’s, one of the US’s biggest household goods retailers, had reported a 35% jump in quarterly profit for the three months to June.
This increase was attributed to its acquisition of home improvement chain, August Scheidt, in September 2017.
While total revenue declined slightly to $15.7bn compared with the same period in 2017, a mix of stronger-than-expected improvements in the home improvement industry and reduced inventory drove the increased profitability.
Since 2007, the retailer’s shares have grown roughly 150%, according to Wall Street Journal data.
The company raised its earnings expectations to $3.26-$3.28, compared with an earlier estimate of $3.19-$3.21 per share.
The stock is trading at about $113 after the update.
Image copyright Getty Images Image caption Robert Niblock was the highest paid of 23 executives at Lowe’s
How much do analysts think Niblock earned?
According to Bloomberg, he received 1.2 million shares through the company’s share options program for receiving a share price target of $114 per share by 2021.
Assuming he was paid only $130 per share in the program, his total compensation last year was more than $9.7m, according to Bloomberg.
He is followed by his co-CEO, Marvin Ellison, who received $6.4m, or 563,100 shares, under the same program.
What others think of the update?
“Lowe’s is now seeing market share gains across all of its major geographic areas, as well as across all major customer segments, including professional and DIY,” said Jodi Samuels, the company’s chief marketing officer.
She said that its newly introduced pricing strategy in the US had also been a winner, as it allowed the company to win new customers.
“This was exemplified in the June, July, August [seasonal] [period] … during which our installed category sales grew approximately 30%,” Ms Samuels added.
Ms Samuels, who joined Lowe’s in April this year, had previously worked at Ulta Beauty, a cosmetics store retailer.
Lowe’s quarterly sales growth comes in stark contrast to rival Home Depot , which has experienced a slowdown in revenues in the past few months.
Both companies have also been plagued by falling online sales.
However, when Home Depot beat earnings expectations on Friday, its online sales dropped 3.7%, after having increased 8.8% in the previous quarter.