Time: 2024-08-20
Lowe 's second quarter earnings fell short of expectations as sales decreased by 5.6 % to 3.59 billion , with same - store sales dropping by 5.1 % . The company attributed this decline to challenges in do - it - yourself projects and poor weather affecting seasonal and outdoor sales . Despite positive comparable sales in its pro business and online segments , this marks the seventh consecutive quarter of sales declines for the home improvement retailer.
While Lowe 's managed to exceed Wall Street profit estimates , it revised its full - year outlook for 2024 downwards . The company now expects total sales to range between 2.7 billion to 3.2 billion , lower than the initial forecast of 4 billion to 5 billion . Additionally , same - store sales are projected to decrease by 3.5 % to 4.0 % , worse than the previously estimated decline of 2 % to 3 % year over year.
With both Lowe 's and Home Depot facing challenges due to the housing market slowdown , homeowners and potential buyers are waiting for interest rate cuts from the Federal Reserve . Home Depot also reported negative sales growth in the second quarter , marking the seventh straight quarter of decline . US same - store sales were down by 3.6 % , with a decrease in foot traffic and average ticket size.
The soft results from home improvement suppliers like Stanley Black & Decker , Floor & Decor , and Tractor Supply have raised concerns about the sector . The housing market has been affected by tight monetary policy and high mortgage rates . However , experts anticipate gradual improvement as interest rates decrease . Both Home Depot and Lowe 's have underperformed the S&P 500 over the past year.
In conclusion , the challenging quarter for Lowe 's reflects broader economic trends and consumer sentiment . With ongoing pressure in the home improvement sector , companies are adjusting their forecasts and strategies to navigate the changing landscape . Investors and analysts will be closely monitoring future developments to assess the impact on the industry and individual companies.
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