Lowe’s Exceeds Q3 Expectations but Warns of Yearly Sales Decline

The company now forecasts total sales between $83 billion and $83.5 billion

Lowe’s delivered better-than-expected third-quarter earnings on Tuesday, boosted by outdoor DIY projects, hurricane-related repairs, and growth in its professional customer segment. Despite the strong quarterly performance, the home improvement retailer revised its full-year sales guidance, projecting a decline. The company now forecasts total sales between $83 billion and $83.5 billion, up slightly from its earlier estimate of $82.7 billion to $83.2 billion. Comparable sales are expected to decline 3% to 3.5%, an improvement from the previously anticipated 3.5% to 4% drop. Net income for the quarter fell to $1.7 billion, or $2.99 per share, down from $1.77 billion, or $3.06 per share, a year earlier. Revenue also declined, slipping to $20.47 billion. Comparable sales dropped 1.1% year over year, weighed down by reduced demand for larger DIY projects but partially offset by hurricane recovery efforts and rising contractor purchases.

Lowe’s competitor, Home Depot, reported similar challenges last week, citing continued consumer caution on high-cost home improvement projects. Home Depot posted its eighth consecutive quarter of declining comparable sales despite hurricane-driven demand and acquisition gains. Lowe’s stock has gained 22% year-to-date, lagging slightly behind the S&P 500’s 24% increase. Shares closed at $271.77 on Monday, giving the company a market value of $154.17 billion.

With high interest rates dampening the home improvement market, Lowe’s remains cautious about its outlook for the remainder of the year.