Lowe’s reported an increase in sales in its latest quarter but slightly lowered its full-year profit forecast amid a challenging economic environment. The company now anticipates total sales of $86 billion, surpassing previous estimates of $84.5 billion to $85.5 billion. However, it expects flat comparable sales, contrasting with typical growth expectations.
Full-year adjusted earnings per share are projected at about $12.25, a decrease from the earlier range of $12.20 to $12.45. The revisions reflect uncertainty in the macroeconomic landscape and costs related to the recent acquisition of Foundation Building Materials.
In the fiscal third quarter, Lowe’s net income fell to $1.62 billion but saw a revenue increase from $20.17 billion a year prior. The company reported adjusted earnings of $3.06 per share, exceeding Wall Street’s expectations of $2.97.
Lowe’s CEO Marvin Ellison noted positive sales trends despite challenges from a weak housing market and rising interest rates. The company aims to attract more contractor business to offset declines in do-it-yourself sales and has made significant professional-focused acquisitions this year, including Foundation Building Materials for $8.8 billion and Artisan Design Group for $1.33 billion. CFO Brandon Sink indicated that Lowe’s strategy would prioritize unique offerings over improving industry conditions.
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