Lowe's lowers full-year forecast and reports decline in sales and net income for Q2.

From CNBC: 2024-08-20 06:43:29

Lowe’s lowers full-year forecast due to weakened DIY projects outlook and lower-than-expected sales. The company now expects total sales between $82.7B-$83.2B compared to the previous $84B-$85B estimate. Earnings per share projected at $11.70-$11.90, down from $12-$12.30 prior. Net income fell to $2.38 billion in Q2, with sales declining for the sixth consecutive quarter.

Lowe’s reported earnings per share of $4.10 and revenue of $23.59 billion for Q2, missing analysts’ expectations. Net sales dropped from $24.96 billion in the previous year. Comparable sales fell by 5.1%, impacted by fewer home projects and adverse weather conditions. Online business and sales to home professionals partially offset declines.

Following reports of weakened consumer spending, Lowe’s outlook remains uncertain amid economic challenges and lower job growth estimates. Economic factors such as higher mortgage rates and borrowing costs continue to strain home improvement retailers. Home Depot reported beating expectations but anticipates a weaker second half due to consumer cautiousness and deferral mindset.

Home Depot CFO attributes customer hesitation to higher interest rates and economic uncertainty. Despite property value gains, consumers are delaying projects. Home Depot shares insights into consumer behavior and economic sentiment impacting home improvement retailers. Lowe’s stock closed at $243.21, up 9%, lagging behind S&P 500 gains of nearly 18%.



Read more at CNBC:: Lowe’s (LOW) Q2 2024 earnings