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 on Wednesday after the company’s outlook fell short of analysts’ expectations and the company signaled that sales could cool after a boom in do-it-yourself and decorating projects during the pandemic.
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, including an extra week. 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.
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