Lowe's fourth-quarter net sales top Wall Street estimates

February 27, 2024 6:24 AM EST
(Updated - February 27, 2024 6:30 AM EST) -- Lowe’s (NYSE: LOW) has reported fourth-quarter net sales that topped Wall Street estimates despite an ongoing slowdown in spending on home improvement projects.

Like peer Home Depot (NYSE: HD), the DIY retailer has been hit by weak discretionary spending as shoppers rein in their expenditures during a time of high inflation and elevated interest rates.

Comparable sales decreased by 6.2% during the three months ended on Feb. 2, which the North Carolina-based company said was due to a cooling in DIY demand and unfavorable January winter weather.

Total sales slipped by 17% versus the year-ago period to $18.60 billion, although Lowe's noted that the corresponding quarter received a $1.4 billion boost from an additional week. Bloomberg consensus estimates had called for $18.47 billion.

Operating income dipped to $1.69 billion, down slightly from $1.70 billion in the same period last year.

"This quarter we delivered strong operating profit and improved customer satisfaction, despite the continued pullback in DIY spending," said Chief Executive Marvin Ellison in a statement.

Lowe's, meanwhile, flagged that its full-year 2024 outlook has been impacted by "near-term macroeconomic uncertainty." The firm expects to post a 2% to 3% decline in comparable sales versus the prior year, total revenue of $84 billion to $85 billion, and diluted earnings per share of about $12.00 to $12.30.

Shares in Lowe's were higher in premarket U.S. trading on Tuesday.

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