Lowe’s reported better-than-expected quarterly revenue and earnings on February 27, 2024, despite facing challenges in the housing improvement market due to high mortgage rates creating a “lock-in effect” for homeowners. For the fiscal year, Lowe’s anticipates revenue growth of 1%, totaling between $83.5 billion and $84.5 billion, with adjusted earnings per share projected between $12.15 and $12.40.
CEO Marvin Ellison indicated that while sales trends are expected to remain flat, Lowe’s is aiming to attract more business from home professionals and take advantage of any recovery in the market. In the fourth quarter, the company reported earnings per share of $1.93, exceeding the Wall Street forecast of $1.84, while revenue was slightly lower than expected at $18.55 billion.
Despite experiencing a 3% decline in total net sales for the fiscal year, there were signs of improvement in the fourth quarter, with a 0.2% increase in comparable sales, helped by online growth and recovery efforts post-Hurricanes Milton and Helen. CFO Brandon Sink anticipates a mostly flat home improvement market for the year ahead.
Lowe’s is focusing on strengthening its online business, enhancing services, and attracting DIY customers through initiatives like a new loyalty program and the introduction of lower-priced private brand products. While its Pro segment remains smaller than that of competitor Home Depot, Lowe’s continues to refine its strategies to boost sales and better serve its customers. As of the latest update, shares of Lowe’s have declined nearly 2% for the year, underperforming against the S&P 500.
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