Lowe’s on Wednesday stood by its full-year forecast, as growing sales among home professionals helped offset slower demand from do-it-yourself customers.
The home improvement retailer came in just shy of Wall Street’s expectations for quarterly sales, but beat earnings estimates.
Weather hurt sales demand, but sales on Lowe’s website and among home professionals grew, the company said in a press release.
Like Lowe’s, competitor Home Depot reaffirmed its full-year forecast earlier this week and posted year-over-year comparable sales declines.
Both companies have tried to attract more sales from home professionals to offset softer sales with do-it-yourself customers.
Growing sales among home professionals helped offset slower demand from do-it-yourself customers, so Lowe’s on Wednesday maintained its full-year forecast.
Despite beating earnings estimates, the home improvement retailer’s quarterly sales came in just short of Wall Street’s expectations.
Wednesday’s premarket trading saw a nearly two percent increase in Lowe’s shares.
According to CEO Marvin Ellison’s news release, the retailer has been able to overcome “near-term uncertainty and housing market headwinds” thanks to investments in its stores, technology, and customer service. “,”.
The demand for home improvement has been weak lately due to rising interest rates and a slower rate of home turnover. S. willingness of customers to invest in more expensive projects. However, based on its outlook, Lowe’s projected that it would overcome the sales slump this year.
According to Lowe’s, the company anticipates full-year sales to be between $83 and $84 billion, which, at the upper end of the spectrum, would exceed its fiscal 2024 total revenue of $83 and 67 billion. According to its projections, comparable sales will be flat to up 1% year over year, and earnings per share will fall between $12.15 and $12.40.
Here are the differences between the company’s fiscal first-quarter results and what Wall Street anticipated, according to an LSEG survey of analysts.
Profits per share: $2.92 for comparison. $2.88 is anticipated.
Revenue: $20-93 billion as opposed to… $20–94 billion is anticipated.
Lowe’s net income decreased to $1.64 billion, or $2.92 per share, in the three months ending May 2 from $1.76 billion, or $3.06 per share, in the same quarter last year. Revenue dropped from $21 billion to $21.36 billion.
Comparable sales fell 11.7 percent from the previous year. Sales on Lowe’s website and among home professionals increased despite the weather’s negative impact on demand, the company reported in a press release.
Similar to Lowe’s, rival Home Depot reported year-over-year comparable sales declines and earlier this week reiterated its full-year forecast. The first quarter of Home Depot’s fiscal year was also greatly boosted by SRS Distribution, a business it purchased that supplies roofing, pool, and landscaping professionals.
In an effort to counteract weaker sales from do-it-yourself clients, both businesses have attempted to increase sales from home professionals. In April, Lowe’s announced that it would pay $1.33 billion to acquire Artisan Design Group, a business that offers flooring, cabinetry, and countertops to property managers and home builders in addition to design services.
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