Lowe's Tops Estimates; Warns DIY Big-Ticket Demand is Still Soft

Sales Outlook

Lowe's Companies Inc reported better-than-expected quarterly sales and profit on Wednesday, as the home improvement chain benefited from continued strength in its core business.

However, the company warned that demand for big-ticket items, such as appliances and tools, remains soft, as consumers remain cautious amid rising interest rates and inflation.

Lowe's net sales rose 5.2% to $27.61 billion in the quarter ended July 29, compared with analysts' average estimate of $27.40 billion, according to Refinitiv data.

Future Outlook

The company said it expects fiscal 2023 comparable sales to be flat to slightly up, compared with its previous forecast of a 1% to 2% increase.

Lowe's shares were down 4.3% in premarket trading after the results were announced.

Financial Performance

The company's net income rose to $3.41 billion, or $4.83 per share, in the quarter, from $3.03 billion, or $4.06 per share, a year earlier.

Excluding items, the company earned $5.05 per share, beating analysts' average estimate of $4.96.

CEO Comments

"We are pleased with our financial performance in the second quarter, as we grew sales and improved profitability in a dynamic environment," said Lowe's CEO Marvin Ellison.

"While the macro environment remains uncertain, we are confident in our ability to navigate these challenges and deliver long-term value for our stakeholders," he added.