Lowe’s saw decline in net earnings and sales in the fiscal third quarter but an analyst signaled hope for recovery in the months to come.

The home improvement retailer’s net sales fell 1.5 per cent year over year to $20.17 billion and net income decreased 4.4 per cent to $1.7 billion in the quarter ended November 1.

Comparable sales slid 1.1 per cent, which the company attributed to continued softness in DIY bigger-ticket discretionary demand, partly offset by storm-related sales and positive comparable sales in Pro and online.

During the period, the company recognized pre-tax income of $54 million from a realized gain on the contingent consideration related to the fiscal 2022 sale of the Canadian retail business.

Meanwhile, GlobalData MD Neil Saunders said that the recent hurricanes Helene and Milton created an increase in demand for home improvement materials, and this will continue to have a modestly favorable impact into the next quarter.

Moreover, Saunders noted that the housing market strengthened during the quarter, which positively affected all home-related retailers.

He also said that the pace of decline for non-movers undertaking DIY projects is easing while the interest in smaller decorative projects is starting to bounce back.

“The hope from the business is that this area of home improvement will continue to strengthen earlier and faster than heavyside DIY, which might create some early wins across 2025,” said Saunders.

Saunders said that Lowe’s remains a solid business and is expected to reap the rewards of its recent investments and innovations next year.