Lowe’s, one of the largest home improvement retailers in the United States, has released its fourth-quarter earnings report, revealing that its sales have fallen short of expectations. The company also offered a soft outlook for the upcoming year, forecasting annual sales below estimates due to a slowdown in demand.
The report showed that Lowe’s total sales for the fourth quarter of 2020 were $20.7 billion, up from $17.5 billion in the same period a year ago. However, this was still lower than the $20.9 billion analysts had expected.
In addition, the company’s earnings per share for the quarter came in at $1.19, beating the $1.04 expected by analysts.
Despite the better-than-expected earnings, Lowe’s offered a soft outlook for the upcoming year, forecasting annual sales growth of 4.5-6.5%, below the 7% growth rate analysts had expected. The company attributed the lower outlook to a slowdown in demand due to the ongoing pandemic.
In response to the news, Lowe’s stock rose by more than 4% in early trading on Tuesday, outperforming the broader market.
Overall, the results show that while Lowe’s is still performing well despite the pandemic, the company is facing a challenging outlook for the upcoming year.