Lowe’s Companies saw lower revenue in the third quarter, which according to an analyst, reflects the home improvement retailer’s reliance on casual and occasional shoppers.

The company’s net sales fell 12.8 per cent year over year to $20.5 billion as comparable sales slid 7.4 per cent in the three months ended November 3.

“Worryingly, Lowe’s is now performing much worse than rival Home Depot. And this comes despite the fact Lowe’s has a more embryonic professional segment which remained in growth this quarter,” said Neil Saunders, MD at GlobalData.

“What this means is that demand from the core DIY consumer has slumped and Lowe’s is bearing the bunt of this pullback.”

Saunders noted that the decline in consumer demand is largely due to the deterioration of the housing market as moving activity remains firmly down.

Meanwhile, Lowe’s net income surged 1051.3 per cent to $1.8 billion due to a $2.1 billion impairment related to its Canadian retail business.

“When this exceptional item is removed, net income is down by around 21 per cent,” said Saunders.

Lowe’s opened one store and three Lowe’s outlet stores during the third quarter.

“In the third quarter, the company delivered strong operating performance and improved customer service despite a greater-than-expected pullback in DIY discretionary spending, particularly in bigger ticket categories,” said Marvin R Ellison, chairman, president, and CEO at Lowe’s.

“Given our 75 per cent DIY mix, the DIY pressure disproportionately impacted our third quarter comp performance. At the same time, our investments in Pro continue to resonate, resulting in positive Pro comps again this quarter.”

For the full-year, Lowe’s forecasts total sales of about $86 billion and comparable sales to decline 2 per cent to 4 per cent.