Lowe’s (LOW) sees macroeconomic uncertainty weighing on its outlook for the year as the do-it-yourself business continues slowing, even though the retailer’s fiscal fourth-quarter results topped market estimates.
The company anticipates per-share earnings in a range of $12 to $12.30 and sales between $84 billion to $85 billion for fiscal 2024. The current consensus on Capital IQ is for GAAP EPS of $12.28 and revenue of $85.5 billion. In the just ended fiscal year, earnings increased to $13.20 a share from $10.17, while sales dropped to $86.38 billion from $97.06 billion.
Comparable sales are expected to be down 2% to 3% on an annual basis in the ongoing year, according to the retailer. The Street’s current forecast is for a 1.3% decrease. In the last quarter, the sales slipped 6.2% as do-it-yourself demand slowed and January winter weather weighed. Pro customer comparable sales were flat, the retailer said.
“This quarter we delivered strong operating profit and improved customer satisfaction, despite the continued pullback in DIY spending,” Chief Executive Marvin Ellison said in a statement. “We remain confident in the long-term strength of the home improvement market, and we are making the right investments in our Total Home strategy to take share.”
As part of the strategy, the company aims to focus on market share acceleration, including growing its online business and expanding installation services.
For the three-month period ended Feb. 2, Lowe’s reported earnings of $1.77 per share, up from $1.58 a year earlier, ahead of the Capital IQ-polled consensus of $1.67. Sales fell to $18.6 billion from $22.45 billion in the prior-year quarter. Selling, general and administrative expenses narrowed to $3.9 billion from $5.13 billion year-on-year.