An employee arranges crates for sale inside a Lowe’s Cos store in Burbank, California.
Patrick T. Fallon | Bloomberg | beautiful pictures
Lowe’s Shares fell on Wednesday after the company’s sales outlook disappointed investors and raised concerns that the pandemic boom in DIY and decorating projects is cooling.
Shares fell nearly 4% in pre-market trading.
The home improvement retailer said it expects total sales to be between $94 billion and $97 billion in the upcoming fiscal year. This is below analyst estimates of $97.64 billion for total sales in 2022, according to Refinitiv.
It says diluted earnings per share will be between $12.25 and $13.00. It predicts same-store sales could be down as much as 3% or nearly flat from this year.
Lowe’s expects total revenue of about $95 billion for this fiscal year, a week shorter than next fiscal year.
The company shared its forecast ahead of its analysts’ meeting on Wednesday morning.
Lowe’s sales have been buoyed by Americans who have remodeled their yards, tackled DIY projects and redecorated rooms during the pandemic. Even like some “interlocking trends” However, its sales have been boosted by the strong real estate market.
Company beat analysts’ expectations for the most recent fiscal quarter, as it has seen more online buying and selling by home professionals. Same-store sales, which track sales online and at Lowe’s stores open for at least 12 months, rose 2.2% over a three-month period. This is higher than the 30.1% growth in the same period last year.
As of late Tuesday, Lowe’s stock was up 57% this year. Shares closed Tuesday at $252.46, down 1.86%. The company’s market value is $170.10 billion.
This story is evolving. Please check back for updates.
https://www.cnbc.com/2021/12/15/lowes-shares-fall-on-concerns-of-slowing-home-improvement-appetite.html Lowe shares fall after retailer gives disappointing 2022 sales forecast