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Lowe's Expected to Report Sales Decline, Following Home Depot's Disappointing Results


Lowe's home improvement store.

USA: Lowe's is expected to release its fiscal Q2 earnings report on 20TH August. According to Bloomberg's consensus, Wall Street anticipates a 4% year-over-year decline in revenue, bringing it to approximately USD 23.9 billion. Adjusted earnings per share are also expected to decrease by 13% to USD 3.97.


Despite solid real wage growth and home price appreciation, the home improvement sector is facing challenges. Consumers remain cautious due to concerns about the rising cost of living and broader economic uncertainties. In the previous quarter, same-store sales for Lowe's declined by 3.3%, surpassing the 2.39% drop analysts had predicted, marking the seventh consecutive quarter of negative sales growth. In the U.S., same-store sales were down 3.6%.


Lowe's has updated its fiscal 2024 guidance, now expecting total sales, including the 53rd week, to grow by 2.5% to 3.5% year-over-year, an increase from the previously forecasted 1%.


The outlook for Lowe's remains cautious, reflecting a return to normalcy post-pandemic, a soft housing market due to higher mortgage rates, and ongoing consumer uncertainty tied to the broader macroeconomic environment, including factors like the upcoming election and Federal Reserve interest rate decisions.


Source: Head Topics



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