Lowe’s cuts full-year sales forecast, as spending on do-it-yourself projects weakens

By Melissa Repko
May 23, 2023
Category: Finance & Economics
Region: United States

Lowe’s cut its full-year outlook Tuesday, as lumber prices fell and do-it-yourself customers bought fewer items. The home improvement retailer’s lowered its forecast even as it beat Wall Street’s revenue and earnings expectations for the fiscal first quarter. CEO Marvin Ellison said lumber deflation, unfavorable weather and lower spending by DIY customers hurt quarterly sales. He said the company expects “a pullback in discretionary consumer spending over the near term.” …Here’s what the company reported for the three-month period ended May 5: Revenue: $22.35 billion vs. $21.6 billion expected; Net income for the three-month period was $2.26 billion, compared with $2.33 billion. …Lowe’s competitor, Home Depot, posted a rare revenue miss with its quarterly report last week. …Like Lowe’s, Home Depot also chalked up lower sales to colder and wetter weather in the western U.S. and falling lumber prices.

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