Lowe's Cuts FY Guidance as DIY Weakness Offsets Pro Strength
LOW is trading near its 52-week low of $199.4 (5.3% above the low).
Summary
Lowe's Q2 sales of $25.96B slightly missed the $26.16B consensus, while adjusted EPS of $4.40 beat the $4.22 estimate. Comparable sales rose just 0.2%, with Pro and home services strength offset by persistent DIY weakness. Management lowered full-year guidance: total sales now expected at $92.0B (down from $92.0-$94.0B), comp sales flat (vs flat to up 2%), and adjusted EPS about $12.25 (vs $12.25-$12.75). The guidance cut signals management expects macro pressures on discretionary DIY spending to persist through the year. This follows Q1 results where comp sales grew 0.6% and the company resumed buybacks; the lowered outlook marks a step back from that momentum.
At the time of this announcement, LOW was trading at $210.00 on NYSE in the Trade & Services sector, with a market capitalization of approximately $120.9B. The 52-week trading range was $199.40 to $293.06. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.