Exterior view of a Lowe’s home improvement store. Report on the financial results of the annual income of Lowe’s Companies, Inc., Lowe’s Companies, Inc. for the year 23, 2023.
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at Lowe’s On Tuesday it lowered its full-year sales outlook, after shoppers spent less on do-it-yourself projects and caused its fiscal third-quarter sales to fall nearly 13% year over year.
The home improvement retailer said it now expects sales to be around $86 billion for the fiscal year. He previously expected a range of $87 billion to $89 billion. It expects comparable sales to fall about 5% this fiscal year, worse than previously expected declines of 2% to 4%. The company expects adjusted earnings per share to be around $13, down from the previously expected range of $13.20 to $13.60.
In a press release, CEO Marvin Ellison said the company was experiencing “greater-than-expected pullback” from customers on discretionary projects and big-ticket purchases. But it said sales to home professionals, who account for a growing share of its revenue, rose in the quarter. These benefits drive about 25% of their business.
He said the company, which sells Christmas trees and decorations, will focus on “offering value and convenience this holiday season.”
Here’s how the company performed for the fiscal third quarter ended Nov. 3:
- Earnings per share: $3.06, it was not immediately clear if it was compared to the $3.03 analysts expected, according to consensus estimates from LSEG, formerly Refinitiv.
- Revenue: $20.47 billion vs $20.89 billion expected
Lowe’s, like its larger competitor Home depotfacing cooling demand as Americans’ huge pandemic-fueled appetite for home improvement methods and higher mortgage rates inject more uncertainty into the housing market.
In the third quarter, Lowe’s net income was $1.77 billion, or $3.06 per share, compared to $154 million, or 25 cents per share in the year-ago period. That quarter included an impairment charge of $2.1 billion as the company exited the Canadian market.
Net sales fell from $23.48 billion a year earlier.
Lowe’s rival Home Depot beat Wall Street’s fiscal third-quarter earnings and revenue expectations last week, even as its sales fell 3% year over year. Home Depot said customers are still fixing up their homes, but it has noticed for several quarters that more of them are taking on smaller, less expensive projects.
Home Depot Chief Financial Officer Richard McPhail also said that “the worst inflationary environment is behind us.”
Lowe’s shares are up about 3% so far this year, but have trailed the gains of about 18% of the S&P 500. The company’s stock closed Monday at $204.44, bringing the company’s market value to nearly $118 billion.
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