Lowe’s On Wednesday, held its annual forecasts, because growing sales among home professionals helped to compensate for the slower demand of customers to do yourself.
The domiciliary renovation retailer came a little before Wall Street expectations for quarterly sales, but beat the profits.
Lowe’s shares increased by almost 3% in pre-marketing negotiations on Wednesday.
In the company’s press release, CEO Marvin Ellison said investments in its stores, technology and customer service have helped the retailer to cross “short -term uncertainty and the opposite winds of the housing market”.
The demand for improvement of the house was in a slower section such as high interest rates and a slower turnover of American consumers to spend on more expensive projects. However, with her prospects, Lowe’s predicted that she was not leaving the sales crisis this year.
Lowe’s said that it expects total annual sales vary from $ 83.5 billion to $ 84.5 billion, which, at the higher end, would be greater than its total turnover of $ 83.67 billion for the year 2024.
Here is what the company reported for the first tax quarter compared to what Wall Street was expecting, on the basis of a survey of analysts by LSEG:
- Profit by action: $ 2.92 against $ 2.88 expected
- Income: $ 20.93 billion against $ 20.94 billion expected
During the three -month period which ended on May 2, Lowe’s net profit fell to $ 1.64 billion, or $ 2.92 per share, compared to $ 1.76 billion, or $ 3.06 per share, in the quarter of the previous year.
Comparable sales decreased by 1.7% from one year to the next. Weather conditions harm sales demand, but sales on the Lowe website and among home professionals have increased, the company said in a press release.
Like Lowe’s, competitor Home Depot Reaffirmed his annual forecasts earlier this week and posted comparable sales drops from year to year. The first tax quarter of Home Depot also obtained an important elevator of the SRS distribution, a company which it acquired which sells supplies to professionals of the house, swimming pools and landscaping.
The two companies have tried to attract more sales of home professionals to compensate for softer sales with customers to do yourself. LOWE announced in April that it acquired Artisan Design Group, a company that provides design services and the installation of floor coverings, cabinets and counters for home manufacturers and real estate managers, in an agreement of $ 1.3 billion.
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