Lowe's (NYSE: LOW) on Tuesday reported quarterly earnings and revenue that beat analysts' expectations, though same-store sales were softer than what Wall Street had anticipated and the company lowered its full-year estimates.
Earnings per share proved to be $1.04 adjusted, vs. 98 cents expected. Revenue was $17.42 billion vs. $17.36 billion expected
Lowe's reported third-quarter net income of $629 million, or 78 cents per share, down from $872 million, or $1.05 per share, a year earlier.
Excluding items, including pre-tax charges of $280 million, Lowe's earned $1.04 per share, above the 98 cents per share expected by analysts surveyed by Refinitiv. Net sales rose 3.8% to $17.42 billion, above expectations of $17.36 billion.
Same-store sales rose 1.5%, below analysts' expectations of 2.9%. CEO Marvin Ellison in a statement said "continued challenges" with inventory out of stocks, "poor reset execution" and assortment concerns in certain categories pressured the company's ability to turn visits into transactions.
The company lowered its full-year sales forecast to about 4%, down from its prior estimate of about 4.5%. It now expects same-store sales to rise 2.5%, compared with a previous estimate of a 3% gain.
Lowe's anticipates full-year adjusted earnings of $5.08 to $5.13 per share.
Lowe's plans to end its Mexico retail operations and is exploring strategic alternatives for the business, the company announced Tuesday. It also plans to exit Alacrity Renovation Services and Iris Smart Home.
Shares in LOW, well, went lower, $5.68, or 6.2%, to $85.67
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