New York City – Lowe’s, a leading retail store, exceeded Wall Street’s expectations for quarterly earnings and revenue. The company projects modest growth in sales for the upcoming year, with estimated total sales ranging from $83.5 billion to $84.5 billion. This forecast surpasses its previous year’s revenue of $83.67 billion. Comparable sales are expected to be flat to up 1% year over year with earnings per share estimated to fall between approximately $12.15 to $12.40.
In the fourth fiscal quarter, Lowe’s reported an adjusted earnings per share of $1.93, beating analysts’ expectations of $1.84. Revenue for the same period was $18.55 billion, higher than the projected $18.29 billion. Following the positive results, Lowe’s shares rose about 4% in premarket trading.
Despite challenges in the home improvement market, Lowe’s net revenue for the fiscal year totaled $83.67 billion. This marked a 3% decline from the previous fiscal year. The company’s outlook, however, suggested potential for improving trends in the coming year, leading to a more than 2% increase in early trading of Lowe’s shares.
Comparable sales for the quarter increased by 0.2%, driven by growth in online sales, heightened sales among home professionals, and revenue from rebuilding efforts post-Hurricanes Milton and Helene. The slight increase marked an end to eight consecutive quarters of declining comparable sales, surpassing analysts’ expectations of a 1.8% decrease.
In contrast, Lowe’s competitor, Home Depot, slightly surpassed fourth-quarter estimates and broke an eight-quarter losing streak with comparable sales. Home Depot’s CFO expressed the belief that consumers will adjust to elevated rates as a new norm, without expecting significant changes in the housing market or mortgage rates.
As of the last closing, Lowe’s shares were priced at $242.39, experiencing a nearly 2% decline for the year. This lags behind the 2% gains of the S&P 500 index during the same period. The market continues to watch for further developments in the retail sector, reflecting the shifting dynamics in consumer behavior and economic trends.
