An employee sorts crates for sale inside a Lowe’s Cos store. In Burbank, California.
Patrick T. Fallon | Bloomberg | beautiful pictures
Lowe’s said Wednesday that it expects Americans’ appetite for home improvement to continue into 2022, though it may cool after a boom in DIY and decorating projects during the pandemic.
Shares fell nearly 4% in pre-market trading.
The home-improvement retailer said it expects total sales to be between $94 billion and $97 billion in the upcoming fiscal year, which includes an extra week. It says diluted earnings per share will be between $12.25 and $13.00. It predicts same-store sales will likely drop as much as 3% or nearly flat from this year.
It shared its forecast ahead of its analysts’ meeting on Wednesday morning.
Lowe’s sales have been buoyed by Americans who have remodeled their yards, tackled DIY projects and redecorated rooms during the pandemic. Even like some “interlocking trends” However, its sales have been boosted by the strong real estate market.
Company beat analysts’ expectations for the third quarter, as it has seen more online buying and selling by home professionals. Same-store sales, which track sales online and at Lowe’s stores open for at least 12 months, rose 2.2% over a three-month period. This is higher than the 30.1% growth in the same period last year.
As of late Tuesday, Lowe’s stock was up 57% this year. Shares closed Tuesday at $252.46, down 1.86%. The company’s market value is $170.10 billion.
This story is evolving. Please check back for updates.
