A Lowe’s Home Improvement Warehouse employee collects carts in a car parking zone on August 17, 2022 in Houston, Texas.
Brandon Bell | Getty Images News | Getty Images
Lowe’s on Wednesday reported fiscal fourth-quarter sales that fell wanting Wall Street’s expectations.
The house improvement retailer issued a conservative outlook for the present yr.
Here’s how the house improvement retailer did compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:
- Earnings per share: $2.28 adjusted, vs. $2.21 expected
- Revenue: $22.45 billion vs. $22.69 billion expected
The corporate’s reported net income for the three-month period that ended Feb. 3 was $957 million, compared with $1.21 billion, or $1.78 per share, a yr earlier.
Sales rose to $22.45 billion from $21.34 billion a yr earlier.
For fiscal 2023, Lowe’s said it expects total sales to be between $88 billion and $90 billion, compared with Wall Street expectations of $90.48 billion. The corporate also expects comparabale sales to be flat or down 2% in comparison with the prior fiscal yr.
The corporate expects its earnings per share for the yr to be $13.60 to $14.00, versus $13.79 projected by analysts.
Amid the Covid pandemic, the house improvement market grew as stuck-at-home consumers undertook pricey renovations and spruced up their living spaces. The market is under more pressure today. Shoppers feeling pinched from high inflation have been using their discretionary dollars on travel and entertainment versus goods like patio furniture and paint.
Last week, rival Home Depot missed Wall Street’s revenue expectations for the primary time since November 2019 and issued a muted outlook. The corporate anticipates flat consumer spending and more pressure on the sector within the quarters ahead because the pandemic-fueled boon subsides.
Nevertheless, a persistent shortage within the country’s housing supply and an aging housing stock, which the house improvement sector has long benefited from, may benefit the retailers. With rates of interest soaring in a stagnant housing market, many individuals with low rates of interest may decide to stay of their homes and perform renovations relatively than move somewhere latest.
Read the complete earnings release here.
