Lowe's lowers annual projections in Q2 report
Lowe's is reporting net earnings of $2.4 billion in Q2 2024. However, it is downgrading its annual forecast based on consumers tightening their belts amid a sour economic climate. According to its Q2 report, Lowe's is forecasting:
- Total sales of $82.7 to $83.2 billion (previous projects were $84 to $85 billion).
- Comparable sales expected to be down -3.5 to -4.0 percent as compared to prior year (previously down -2 to -3%).
- Adjusted operating income as a percentage of sales (adjusted operating margin) of 12.4 to 12.5 percent (previously 12.6 to 12.7%).
- Net interest expense of approximately $1.4 billion.
- Adjusted diluted earnings per share of approximately $11.70 to $11.90 (previously $12.00 to $12.30).
- Capital expenditures of approximately $2 billion.
Lowe's total sales for the quarter were $23.6 billion, compared to $25 billion in the prior-year quarter. Comparable sales for the quarter shrank 5.1 percent, which the company says is driven by decreases in big-ticket DIY discretionary spending and "unfavorable weather" that's affecting sales in the retail giant's seasonal and other outdoor categories.
Lowe's CEO Marvin Ellison said in a statement:
"The company delivered strong operating performance and improved customer service despite a challenging macroeconomic backdrop, especially for the homeowner. At the same time, we continue to build momentum with our Total Home strategy reflected by our mid-single-digit positive comps with the Pro customer this quarter. As we look ahead, we are confident that we are making the right long-term investments to take share when the market recovers. I’d like to extend my appreciation to our dedicated frontline associates who remain committed to serving our customers.”
You can access the company's full Q2 2024 financial statement here.
