LOS ANGELES, CA – AUGUST 20: The exterior sign of a Lowe’s Home Improvement store is seen on August 20, 2024 in Los Angeles, California. The company beat second-quarter profit expectations, but sales missed expectations and blamed inflation for its full-year forecast. (Photo by Eric Thayer/Getty Images)
Eric Thayer | Getty Images News | Getty Images
Lowe’s The company’s quarterly profit beat Wall Street forecasts on Tuesday as outdoor DIY projects, its home professional business and strong online shopping boosted sales.
However, even with better-than-expected results, the home-improvement retailer still expects annual sales to decline. The company updated full-year guidance on Tuesday and now expects total sales to be between $83 billion and $83.5 billion, up from its previous forecast of $82.7 billion to $83.2 billion. The company said it expected comparable sales to fall 3% to 3.5%, slightly better than its previous forecast of a 3.5% to 4% decline.
Lowe’s has come a long way from the same period last year, when the company lowered its forecast and sales were down nearly 13%. The company also cut its full-year forecast in August as it expected demand for home improvement to be soft in the second half of the year due to high interest rates.
Here’s how the company’s report for the three months ended Nov. 1 compared with Wall Street expectations, according to a survey of analysts by London Stock Exchange Group (LSEG):
- Earnings per share: Adjusted $2.89, expected $2.82
- income: US$20.17 billion, expected US$19.95 billion
In the fiscal third quarter, Lowe’s net income fell to $1.7 billion, or $2.99 per share. That compares with $1.77 billion, or $3.06 per share, in the same period last year. Revenue fell from $20.47 billion in the same period last year.
Lowe’s competitors, home depotReports last week suggested that even after the Federal Reserve cut interest rates twice, customers were still putting off larger projects and more expensive purchases. Home Depot’s sales and profit estimates beat Wall Street expectations, but its comparable sales fell for the eighth straight quarter. However, the company’s sales trends did improve due to hurricane-related demand, warm-weather residential projects and the acquisition of SRS Distribution, a company that sells supplies to landscaping, pool and roofing professionals.
As of Monday’s close, Lowe’s shares had risen about 22% this year. That’s lower than the S&P 500’s gain of about 24% during the same period. The company’s shares closed at $271.77 on Monday, giving Lowe’s a market value of $154.17 billion.
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