An employee organizes buckets for sale inside a Lowe’s Cos. store in Burbank, California.
Patrick T. Fallon | Bloomberg | Getty Images
Lowe’s shares fell Wednesday after the company’s sales outlook disappointed investors and raised concerns that the pandemic-fueled boom in do-it-yourself and decorating projects is cooling.
Shares were down nearly 4% in premarket trading.
The home improvement retailer said it expects total sales to range from $94 billion to $97 billion in the upcoming fiscal year. That fell below analysts’ estimates of $97.64 billion for total sales in 2022, according to Refinitiv.
It said diluted earnings per share will range between $12.25 and $13.00. It anticipates same-store sales will could drop by as much as 3% or be roughly flat with this year.
Lowe’s expects total sales of approximately $95 billion for this fiscal year, which is one week shorter than next fiscal year.
The company shared the forecast ahead of an analyst meeting on Wednesday morning.
Lowe’s sales have gotten a lift from Americans who fixed up their yards, tackled DIY projects and redecorated rooms during the pandemic. Even as some of those “nesting trends” recede, however, its sales have been buoyed by the strong real estate market.
The company beat analysts’ expectations in the third-quarter, as it saw more online sales and purchases by home professionals. Same-store sales, which track sales online and at Lowe’s stores open for at least 12 months, rose by 2.2% in the three-month period. That’s on top of 30.1% growth in the year-ago period.
As of Tuesday’s close, Lowe’s shares are 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 developing. Please check back for updates.
