Home improvement retailer Lowe’s (LOW) has reported mixed second-quarter financial results and lowered its full-year guidance amid tepid demand for do-it-yourself projects.
The company announced earnings per share (EPS) of $4.10 U.S. versus $3.97 U.S. that was expected on Wall Street.
Revenue in the quarter totaled $23.59 billion U.S. compared to $23.91 billion U.S. that had been forecast among analysts. Sales were down 6% from a year earlier.
Lowe’s has now posted a year-over-year sales decline for six consecutive quarters.
Company executives blamed the mixed results on “lower-than-expected DIY sales and a pressured macroeconomic environment.”
Comparable sales at Lowe’s declined 5.1% during the quarter as consumers took on fewer home projects and poor summer weather in many areas hurt sales of outdoor products.
Analysts have speculated that home improvement retailers are seeing sales decline as homeowners grapple with higher mortgage rates, which is limiting the money they have to spend fixing up their properties.
Looking ahead, Lowe’s management said that they expect total sales of $82.70 billion U.S. to $83.20 billion U.S. for the full year.
That’s down from previous guidance of $84 billion U.S. to $85 billion U.S. The company added that it expects comparable sales to fall by 3.5% to 4% this year.
In terms of profit, Lowe’s anticipates earnings of $11.70 U.S. to $11.90 U.S. compared with a previous outlook of $12 U.S. to $12.30 U.S.
The stock of Lowe’s has increased 12% over the past year and currently trades at $243.21 U.S. per share.
