Lowe's Sees Weak FY24 Results, Below Market - Update

(RTTNews) - Home improvement retailer Lowe's Companies, Inc. (LOW), while reporting higher profit and weak sales in its fourth quarter, on Tuesday issued fiscal 2024 outlook, below last year as well as market estimates, reflecting near-term macroeconomic uncertainty.

For fiscal 2024, the company projects earnings per share of approximately $12.00 to $12.30 and total sales of $84 to $85 billion.

Analysts on average expect the company to report earnings of $12.75 per share on sales of $85.38 billion, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

In fiscal 2023, net earnings were $13.20 per share and net sales were $86.38 billion.

Further, for fiscal 2024, comparable sales are expected to be down 2 percent to 3 percent as compared to prior year, and operating margin would be 12.6 percent to 12.7 percent.

Marvin Ellison, Lowe's chairman, president and CEO, said, "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."

In its fourth quarter, Lowe's earnings totaled $1.02 billion or $1.77 per share, higher than $957 million or $1.58 per share last year. The prior year's adjusted earnings per share were $2.28.

The company's revenue for the quarter fell 17.1 percent to $18.60 billion from $22.45 billion last year.

The company noted that the prior-year quarterly sales included around $1.4 billion from the additional 53rd week, as well as $958 million generated from Canadian retail business.

Comparable sales for the quarter decreased 6.2 percent due to a slowdown in DIY demand and unfavorable January winter weather.

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