Lowe's Companies, Inc., a leading retailer in home improvement, has reported an increased profit but slower sales in the last quarter. The company, which projected a fiscal outlook for 2024 that fell short of both the previous year's and the market's expected figures, attributes this forecast to imminent macroeconomic instability.
The company has predicted earnings per share for the fiscal year 2024 to hover around $12.00 to $12.30. They also project the total sales for the same period to range from $84 to $85 billion. These figures contrast with the average expectations of analysts who predict the company to report earnings of $12.75 per share on sales amounting to $85.38 billion. These predictions are based on data gathered by Thomson Reuters and generally disregard any unusual items.
Looking back at fiscal 2023, Lowe's Companies declared net earnings of $13.20 per share and net sales reaching up to $86.38 billion. In line with the outlook for 2024, the firm anticipates a slight downturn in comparable sales of about 2 to 3 percent relative to the previous year, with an operating margin expected to range between 12.6 and 12.7 percent.
Lowe's Chairman, President, and CEO, Marvin Ellison, remains positive about the long-term prospects of the home improvement market despite these projections. He asserts that the company is making the right investments in their Total Home strategy to maintain market share effectively.
During the fourth quarter, Lowe's reported earnings amounting to $1.02 billion or $1.77 per share, up from $957 million or $1.58 per share from the corresponding period last year. However, the company saw a 17.1 percent decrease in revenue, falling to $18.60 billion from $22.45 billion in the same period of the previous year.
The company attributed this decrease in revenue to a couple of factors. These included the additional 53rd week which contributed around $1.4 billion, as well as roughly $958 million which was the result of the Canadian retail segment. Comparable sales for the quarter exhibited a decrease of 6.2 percent in response to a weakened demand for DIY plus unfavorable winter conditions in January.
