Lowe's beats on earnings and hikes guidance, but still expects sales to fall this year

Lowe's Companies Inc. reported better-than-expected earnings for the second quarter, but the home improvement retailer still expects sales to fall this year.

The company reported earnings per share of $4.63 for the quarter, beating the analyst consensus estimate of $4.51. Lowe's also raised its guidance for the full year, now expecting earnings per share of $18.45 to $19.45, up from its previous guidance of $18.20 to $19.20.

However, Lowe's also said it expects sales to fall by 1% to 3% this year, after previously expecting a decline of 2% to 4%. The company cited a number of factors for the sales decline, including a slowdown in the housing market and inflation.

Despite the sales decline, Lowe's CEO Marvin Ellison said the company is "well-positioned to navigate the current economic environment." He pointed to the company's strong balance sheet and its focus on cost-cutting.

Lowe's shares rose 2% in premarket trading on Wednesday.