©Reuters.
Investing.com — Lowe's (NYSE:) reported fourth-quarter net sales that beat Wall Street expectations, even as spending on home improvement projects continued to slow.
like a friend home depot (NYSE:), the DIY retailer has been hit by a downturn in discretionary spending as shoppers cut back on spending during a period of high inflation and rising interest rates.
Sales for the three months ended Feb. 2 fell 6.2%, which the North Carolina-based company blamed on cooling DIY demand and bad winter weather in January.
Total sales were down 17% year-over-year to $18.6 billion, but Lowe's noted that the quarter was up $1.4 billion due to additional weeks. The Bloomberg consensus estimate was $18.47 billion.
Operating income was $1.69 billion, down slightly from $1.7 billion in the same period last year.
“Despite continued declines in DIY spending, we delivered strong operating income and improved customer satisfaction in the quarter,” CEO Marvin Ellison said in a statement.
Meanwhile, Lowe's warned that its full-year 2024 outlook was affected by “short-term macroeconomic uncertainty.” The company expects sales to decline 2% to 3% year over year, with total sales of $84 billion to $85 billion and diluted earnings per share of approximately $12.00 to $12.30.
“It was better than expected. [fourth-quarter] result [are] “The worst is behind us and the outlook for FY24 is likely to provide optimism that it is achievable/attainable. However, this story remains macro A lot depends on it,” he said.
Lowe's stock hovered around the flatline in pre-market trading in the U.S. on Tuesday.