Lowe’s sticks by full-year earnings forecast despite weakening sales, as spring projects offer a boost

Lowe’s reported mixed fiscal second-quarter results on Tuesday, as consumers’ interest in tackling springtime projects helped offset weakening home improvement demand.

The home improvement retailer topped Wall Street’s earnings estimates, but fell slightly short of expected sales.

Lowe’s stuck by its full-year forecast. It anticipates total sales will range between $87 billion and $89 billion for the period. It projects comparable sales will drop by 2% to 4% this fiscal year. It expects adjusted earnings per share will range between $13.20 and $13.60.

Lowe’s cut its full-year forecast in May.

Here’s how the company did for the three-month period that ended Aug. 4 compared with what analysts expected, according to consensus estimates from Refinitiv:

• Earnings per share: $4.56 vs. $4.49 expected
• Revenue: $24.96 billion vs. $24.99 billion expected

Lowe’s net income for the three-month period was $2.67 billion, or $4.56 per share, compared with $2.99 billion, or $4.68 per share in the year-ago period.

Net sales fell from $27.48 billion a year earlier.

Comparable sales decreased 1.6% in the fiscal second quarter. That’s better than the 2.6% decline that analysts expected, according to FactSet.

Shares of Lowe’s closed on Monday at $217.59, bringing the company’s market value to $127.5 billion. So far this year, Lowe’s stock is up more than 9%. That’s less than the approximately 14% gains of the S&P 500.

This is a developing story. Please check back for updates.