Lowe’s Companies Inc (LOW) on Wednesday warned of a hit to full-year sales and reported an unexpected drop in comparable sales, as demand for tools and paints eased from pandemic highs amid soaring inflation and a return to pre-pandemic work routines.
Lowe’s reported a surprise 0.3% drop in quarterly comparable sales, while the median analyst forecast had pointed to a 2.4% growth.
The home improvement chain now expects full-year total sales toward the lower end of its forecast range of $97 billion to $99 billion and it also forecasts comparable sales in the lower end of its previously expected range of -1% to +1% growth.
The company reported earnings of $4.67 per share in the second quarter ended July 29th, which exceeded market consensus of $4.58 per share, as costs dropped.
Lowe’s now expects full-year earnings per share at the upper end of its forecast range of $13.10 to $13.60 due to cost control and stable demand from professional builders.
Lowe’s shares closed higher for a sixth consecutive trading session in New York on Wednesday. The stock went up 0.58% ($1.25) to $215.37, after touching an intraday high at $221.19. The latter has been a price level not seen since March 29th ($221.34).
The shares of Lowe’s Companies Inc have retreated 16.68% so far in 2022 compared with a 10.33% loss for the benchmark index, S&P 500 (SPX).
In 2021, Lowe’s Companies Inc’s stock went up 61.04%, thus, it outperformed the S&P 500, which registered a 26.89% gain.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
