Lowe’s (LOW) stock is down 5% after the home improvement retailer lowered its full-year sales outlook and reported that its third-quarter sales declined nearly 13% from a year ago.
The company announced earnings per share of $3.06 U.S., which was better than the $3.03 U.S. forecast by analysts.
However, revenue of $20.47 billion U.S. came in lighter than the $20.89 billion U.S. that was expected on Wall Street.
Lowe’s said it now expects that its sales will total $86 billion U.S. for all of this year, down from $87 billion U.S. to $89 billion U.S. previously.
The company also forecast a decline in comparable sales of 5%, which is worse than a previous anticipated decline of 2% to 4%.
In a news release, Lowe’s said that it is experiencing a “greater-than-expected pullback” by consumers when it comes to spending on discretionary items and big-ticket purchases.
On a positive note, the company said that sales to professional contractors and builders are accounting for a growing share of its revenue and now comprise 25% of its revenue.
Lowe’s has struggled in recent quarters as consumer demand for home improvement projects wanes and higher mortgage rates cool the housing market.
Before today (Nov. 21), the stock of Lowe’s had gained 3% this year to $204.44 U.S. per share.
