Lowe's cut its full-year guidance to the low end as it cited 'pressure' on spending. Shares fell 2% on the cautious outlook.
Alpha Score of 48 reflects weak overall profile with weak momentum, weak value, moderate quality, moderate sentiment.
Lowe's on Wednesday updated its full-year guidance to the bottom end of its prior range, saying it sees “pressure” on home improvement spending. The company now expects total sales of $92 billion and flat comparable sales. Adjusted earnings are seen at $12.25 per share, down from a previous range of $12.25 to $12.75.
The retailer reported mixed second-quarter results. Net income was $2.4 billion, or $4.27 a share, roughly even with a year earlier. Adjusted earnings came in at $4.40, including an 11-cent benefit from tariff refunds. Revenue rose to $25.96 billion from $23.96 billion in the year-ago period. Comparable sales ticked up 0.2%.
Strong performance in the professional contractor and home services segments drove the comparable sales increase. Online sales jumped 15.7%. The company said those gains were partly offset by macroeconomic pressure on do-it-yourself customers.
CEO Marvin Ellison said in a statement: “While the near-term remains dynamic, our teams are executing at a high level, advancing our Total Home strategy and investing to drive growth and profitability.”
Shares fell about 2% in premarket trading.
The cautious outlook follows a similar tone from larger rival Home Depot, which reported Tuesday that customers are not returning to big projects and described the housing market as “frozen.” Both retailers face slow home sales and a consumer pulling back on discretionary spending.
Lowe's HD stock page carries an Alpha Score of 48 out of 100, labeled Mixed.
Lowe's shares were down about 2% in premarket trading Wednesday.
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