8xbet1

Lowe's Cuts Its Forecast as Sales Drop Amid Decline in DIY Project Spending

8xbet1Liên kết đăng nhập
Bloomberg / Contributor / Getty Images

Key Takeaways

  • Lowe's missed quarterly sales estimates and cut its forecast as DIY project demand slowed.
  • The home improvement retailer's revenue and comparable store sales declined amid a drop in DIY discretionary spending, especially for big-ticket items.
  • Lowe's benefited from an increase in business from professional contractors.

Shares of Lowe’s (LOW) dropped over 2% in early trading Tuesday after the home improvement retailer missed revenue expectations and slashed its outlook as the booming demand for home upgrades during the pandemic faded.

Lowe’s now expects full-year earnings per share (EPS) of about $13, and revenue at $86 billion. That’s down from its previous estimates of EPS in the range of $13.20 to $13.60, and revenue of $87 billion to $89 billion. In addition, the company projects comparable store sales falling 5% versus its earlier forecast of a drop of between 2% and 4%.

In its fiscal 2023 third quarter, Lowe’s reported EPS of $3.06, better than expected, but sales fell 12.8% from a year ago to $20.47 billion, less than anticipated. Comparable store sales slipped 7.4%.
CEO Marvin Ellison blamed the lackluster results and guidance on a decline in discretionary spending for do-it-yourself (DIY) projects, especially big-ticket items. He noted that because so much of Lowe’s revenue is generated by DIY consumers, the “greater-than-expected” pullback “disproportionately impacted our third quarter comp performance.” However, he explained that Lowe’s benefited from increased demand from professional contractors.

With Tuesday's losses, Lowe’s shares were little changed for 2023. 

8xbet1Liên kết đăng nhập
TradingView
Do you have a news tip for Investopedia reporters? Please email us at
Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. Lowe’s. “.”
Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
m88bet mu88 casino fun88 wtf qh88 m88 cá cược trực tuyến