Lowe's Q2 earnings beat estimates, but revenue and guidance falls short on lower-than-expected DIY sales

Lowe's Cos. (NYSE:LOW ) reported second-quarter earnings before the open Tuesday, surpassing expectations, despite a decline in revenue amid challenging macroeconomic conditions. The home improvement retailer's stock edged down 0.8% following the announcement.

Lowe's posted adjusted earnings per share of $4.10 for the quarter ended Aug. 2, 2024, exceeding the estimate of $3.96. However, revenue fell short at $23.59 billion, compared to the consensus estimate of $23.93 billion and down from $25.0 billion in the same quarter last year.

Comparable sales decreased 5.1% YoY, driven by continued pressure in DIY bigger ticket discretionary spending and unfavorable weather impacting seasonal and outdoor categories. This was partially offset by positive comparable sales in Pro and online segments.

"The company delivered strong operating performance and improved customer service despite a challenging macroeconomic backdrop, especially for the homeowner," said Marvin Ellison, Lowe's chairman, president and CEO.

Lowe's updated its full-year 2024 outlook, citing lower-than-expected DIY sales and a pressured macroeconomic environment. The company now expects total sales of $82.7 to $83.2 billion, down from its previous forecast of $84 to $85 billion. Adjusted earnings per share are projected to be between $11.70 and $11.90, lower than the earlier guidance of $12.00 to $12.30.

The revised guidance falls below expectations, with the consensus estimate for full-year EPS at $12.14 and revenue at $84.16 billion.

During the quarter, Lowe's repurchased approximately 4.4 million shares for $1.0 billion and paid $629 million in dividends.

Source: Investing.com