The stock of Lowe’s (LOW) is down slightly after the home improvement retailer issued a downbeat sales outlook for the year ahead.
In releasing its latest financial results, Lowe’s said that it continues to see consumers spend less on home projects.
The company previously cut its full year forecast last November, citing soft consumer spending on pricier items and discretionary projects.
For 2024, Lowe’s said that it expects its comparable sales to decline 2% to 3% and anticipates earnings per share (EPS) of $12 to $12.30. Both projections are lower than previous estimates.
The glum outlook comes as Lowe’s managed to report better-than-expected financial results for the fourth and final quarter of last year.
The company announced earnings per share (EPS) of $1.77 U.S. compared to $1.68 U.S. that was expected on Wall Street.
Revenue in the quarter totaled $18.60 billion U.S. versus $18.45 billion U.S. that was forecast by analysts. Lowe’s sales were down 17% from a year earlier.
The company blamed the lower Q4 revenue, in part, on the sale last autumn of its Canadian retail business.
Lowe’s said that its comparable sales declined 6.2% year-over-year, while sales for home professionals that includes contractors were flat from a year earlier.
During Q4 2023, Lowe’s spent $404 million U.S. on stock buybacks and paid out $633 million U.S. in dividends to shareholders.
Lowe’s stock is down about 1% on news of its latest earnings print. Prior to today (Feb. 27), the company’s share price had risen 13% over the last 12 months to trade at $231.32 U.S. per share.
