Lowe's: reduces annual forecasts

(CercleFinance.com) - Lowe's, the number-two American DIY and home improvement retailer, lowered its annual targets on Tuesday following weaker-than-expected quarterly sales.


The Mooresville, North Carolina-based group reported net earnings of $2.4bn, or $4.17 per share, for Q2 (ended August), compared with $2.7bn, or $4.56 per share, in the same period last year.

Excluding the gain on its Canadian operations, EPS reached $4.10, above the market consensus of around $4.

However, the retailer reported lower-than-expected sales, penalized by a drop in the average sales receipt and unfavorable weather conditions.

Total sales fell to $23.6bn, compared with $25bn a year earlier and a consensus target of $24bn. On a same-store basis, group sales fell by 5.1%.

Citing a "difficult economic environment", Lowe's has lowered its forecasts for the current financial year.

For the fiscal year ending January 2024, it now expects sales of $82.7-83.2bn, compared with $84-85bn previously.

Same-store sales are expected to fall by 3.5% to 4%, compared with a forecast of 2% to 3% previously.

The company also stated that it now expected annual EPS of between $11.70 and $11.90, compared with a previous forecast of $12 to $12.3.

This publication was not punished, however, as the share price was slightly up (+0.6%) in pre-market trading.

Last week, Lowe's main competitor, Home Depot, had already reduced its annual targets.

At Monday's close on the New York Stock Exchange, Lowe's shares were up 9% year-to-date.


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