Lowe’s sales rise but warns of housing market struggles

Lowe’s beat Wall Street expectations in the latest quarter, but warned that the housing market remains weak. 

Revenue rose to $20.58 billion, topping estimates of $20.34 billion. Adjusted earnings per share came in at $1.98, above the expected $1.94. 

Comparable sales increased 1.3%, beating forecasts of 0.2%, helped by strong holiday demand, online growth, and higher sales to home professionals.

Still, net income fell to $999 million, down from $1.13 billion a year ago. 

CEO Marvin Ellison said high mortgage rates, inflation, and economic uncertainty are keeping homeowners from moving. Fewer home sales mean fewer renovation projects.

For the full year, Lowe’s expects sales between $92 billion and $94 billion, up 7% to 9%. It projects adjusted earnings of $12.25 to $12.75 per share, below analysts’ $12.95 estimate. 

Shares dropped more than 4%, even though the stock remains up nearly 16% this year, outperforming the S&P 500’s roughly 1% gain.