Lowe’s same-store sales grew 5% in the fourth quarter.
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Lowe’s reported fiscal fourth-quarter earnings that topped analysts’ estimates and raised guidance for the next fiscal year.
Shares of home-improvement retailer Lowe’s (ticker: LOW) were up 3.4% in trading Wednesday to $221.84.
Revenue in the quarter of $21.34 billion and same-store sales growth of 5% also beat Wall Street’s expectations. U.S. same-store sales growth of 5.1% at Lowe’s topped forecasts of 4.1%.
Gross margin in the quarter was 32.9% vs. 31.8% a year earlier.
Lowe’s said it expects earnings for the fiscal year $13.10 to $13.60 a share,higher than forecasts of $12.93, and above its prior guidance of $12.25 to $13 a share. The company said it sees sales at $97 billion to $99 billion vs. expectations of $97.14 billion, and comparable sales ranging from a decline of 1% to an increase of 1%. Gross margins are expected up slightly from the prior year.
“We remain confident in the long-term strength of the home-improvement market, and our ability to expand operating margin,” said Marvin R. Ellison, Lowe’s president and CEO, in a statement.
Analysts surveyed by FactSet expected Lowe’s to report fourth-quarter earnings of $1.71 a share on revenue of $20.93 billion. A year earlier, Lowe’s earned $1.33 a share on revenue of $20.31 billion.
Analysts at Wells Fargo said Lowe’s fourth-quarter results “were solid but not perfect,” but added the company appears “well-positioned in FY22 for positive comps and expanding EBIT margins.”
Wells Fargo rates the stock at Overweight with a price target of $295. Analysts surveyed by FactSet also rate the stock at Overweight with a price target, on average, of $279.75.
Lowe’s shares declined Tuesday after rival Home Depot posted fourth-quarter earnings that beat estimates but also reported a decline in gross margins. Home Depot’s forecast for the year ahead also failed to excite investors. Home Depot dropped nearly 9% on Tuesday. It was rising 0.6% Wednesday.
Write to Joe Woelfel at [email protected]
