Lowe's offers soft sales outlook as revenue misses expectations

Lowe's connected Wednesday reported fiscal fourth-quarter income that fell abbreviated of Wall Street's expectations.

The location betterment retailer issued a blimpish outlook for the existent year.

Here's however the location betterment retailer did compared with what Wall Street was anticipating, based connected a survey of analysts by Refinitiv:

• Earnings per share: $2.28 adjusted, vs. $2.21 expected
• Revenue: $22.45 cardinal vs. $22.69 cardinal expected

The company's reported nett income for the three-month play that ended Feb. 3 was $957 million, compared with $1.21 billion, oregon $1.78 per share, a twelvemonth earlier. 

Sales roseate to $22.45 cardinal from $21.34 cardinal a twelvemonth earlier.

For fiscal 2023, Lowe's said it expects full income to beryllium betwixt $88 cardinal and $90 billion, compared with Wall Street expectations of $90.48 billion. The institution besides expects comparabale income to beryllium level oregon down 2% compared to the anterior fiscal year.

The institution expects its net per stock for the twelvemonth to beryllium $13.60 to $14.00, versus $13.79 projected by analysts.

Amid the Covid pandemic, the location betterment marketplace grew arsenic stuck-at-home consumers undertook pricey renovations and spruced up their surviving spaces. The marketplace is nether much unit these days. Shoppers feeling pinched from precocious ostentation person been utilizing their discretionary dollars connected question and amusement arsenic opposed to goods similar patio furnishings and paint.

Last week, rival Home Depot missed Wall Street's gross expectations for the archetypal clip since November 2019 and issued a muted outlook. The institution anticipates level user spending and much unit connected the assemblage successful the quarters up arsenic the pandemic-fueled boon subsides.

However, a persistent shortage successful the country's lodging proviso and an aging lodging stock, which the location betterment assemblage has agelong benefited from, could payment the retailers. With involvement rates soaring successful a stagnant lodging market, galore radical with debased involvement rates whitethorn take to enactment successful their homes and execute renovations alternatively than determination determination new.

Read the afloat net merchandise here.