Lowe's posted mixed fiscal second-quarter results on Wednesday, citing continued pressure in home improvement spending, and narrowed its full-year guidance to the bottom of its prior range. Adjusted earnings per share beat analyst estimates, helped in part by a tariff-refund benefit, while shares fell more than 3% in premarket trading.
Earnings beat, revenue falls short
Lowe's reported adjusted earnings per share of $4.40 for the quarter ended July 31. Analysts polled by LSEG had expected $4.22. Revenue came in at $25.96 billion, up from $23.96 billion a year earlier. Wall Street had forecast $26.16 billion.
Net income totaled $2.4 billion, or $4.27 per share, roughly matching the year-ago period. Tariff refunds added an 11-cent boost to adjusted earnings per share this quarter.
Pro and online sales offset DIY caution
Comparable sales rose 0.2%, lifted in part by strong performance in the company's pro and home-services business. Online sales climbed 15.7%, though that gain was partially offset by macroeconomic pressure weighing on do-it-yourself customers.
CEO Marvin Ellison said, According to CNBC: "our teams are executing at a high level", pointing to the company's Total Home strategy as a driver of growth and profitability.
Full-year guidance moves to the low end
Lowe's narrowed its full-year sales outlook to $92 billion, down from a prior range of $92 billion to $94 billion, and now expects comparable sales to be flat rather than flat to up 2%. It also lowered its adjusted earnings-per-share target to $12.25, the bottom of its earlier $12.25-to-$12.75 range.
Shares of Lowe's fell more than 3% in premarket trading following the report. The update echoes a similar tone from rival Home Depot, which said Tuesday it did not see customers returning to big projects and continues to operate in frozen housing market conditions.
Source: US Top News and Analysis
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