Lowe’s earnings top expectations, though company sees lower DIY discretionary demand

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Lowe’s earnings top expectations, though company sees lower DIY discretionary demand
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Lowe’s Cos. Inc. saw comparable sales decline in the latest quarter, but not by as much as analysts were expecting. The shares were moving fractionally...

Lowe’s Cos. Inc. LOW, -0.80% saw comparable sales decline in the latest quarter, but not by as much as analysts were expecting. The shares were moving fractionally higher in Tuesday’s premarket trading after Lowe’s posted a 1.6% decline in comparable sales for the fiscal second quarter compared with the 2.6% drop that analysts were expecting. Net earnings at Lowe’s were $2.7 billion, or $4.56 a share, compared with $3.0 billion, or $4.67 a share, in the year-prior quarter.

The FactSet consensus was for $4.47 a share. Revenue fell to $25.0 billion from $27.5 billion and matched the consensus view. Lowe’s called out a “strong spring recovery” and traction in its Pro and online businesses, though it said that lumber deflation and lower do-it-yourself discretionary demand weighed on comparable sales. The company affirmed its outlook for the full fiscal year. That calls for $87 billion to $89 billion in sales and a 2% to 4% drop in comparable sales.

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