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Key Takeaways
- Lowe’s Companies reported diluted fourth-quarter earnings per share of $1.77, up from $1.58 the prior year and beating analysts’ expectations.
- The company continues to weather a consumer slowdown in the home improvement sector, with quarterly comparable sales down 6.2% from the prior year.
- Full-year comparable sales guidance for 2024 came in lower than expectations, with a forecast of a 2% to 3% decline.
Lowe’s Companies Inc. (LOW) reported fourth-quarter earnings that beat expectation Tuesday but issued weaker-than-expected full-year 2024 guidance as consumers pull back on home improvement spending.
The retailer posted diluted earnings per share (EPS) of $1.77 for the recent quarter, up from $1.58 in the fourth quarter of 2022. Quarterly revenue of $18.6 billion was down from $22.4 billion a year prior but a tick above market expectations.
Lowe’s reported that its fourth-quarter comparable sales were down 6.2% from the prior year as DIY companies battle weaker demand. Inflationary pressures have led to price rises for home improvements, while customers feel stretched in the current environment, with January’s drop in retail sales highlighting continued strain.
”This quarter we delivered strong operating profit and improved customer satisfaction, despite the continued pullback in DIY spending,” CEO Marvin R. Ellison said. “We remain confident in the long-term strength of the home improvement market.”
However, Lowe’s full-year 2024 guidance showed a tough path ahead, with earnings forecast to be in a range of $12 to $12.30 a share, lower than expectations. Management expects comparable sales to be 2% to 3% lower than the previous year, also below analysts’ consensus view.
Lowe’s shares were up 1.7% to $235.03 at 1:45 p.m. ET Tuesday.