Lowe's Companies (NYSE: LOW) shares tumbled on missing analysts expectations in its fourth quarter.
Adjusted earnings per share were 74 cents compared to 87 cents expected.
Revenue was $15.49 billion vs. $15.33 billion, while same-store sales: 4.1% increase vs. growth of 3.1%.
CEO Robert Niblock commented, "As we enter 2018, we are working diligently to improve execution with a focus on conversion, gross margin, and inventory management.
"Given the rapidly evolving competitive landscape, we are also accelerating our strategic investments leveraging the benefits of tax reform."
Lowe's net income dropped to $554 million, or 67 cents a share, compared with $663 million, or 74 cents per share, a year earlier, which included an extra week.
Revenue during the period fell about 2% to $15.49 billion, but exceeded Wall Street expectations for $15.33 billion.
Lowe's, like Home Depot (NYSE: HD), has benefited from a strong U.S. housing market and an aging millennial population starting to invest in permanent residencies. The North Carolina-based company recently launched DIY apps and augmented-reality assistants to cater to a younger and more tech-savvy audience.
Delivering on its commitment to return excess cash to shareholders, the company repurchased $133 million of stock under its share repurchase program and paid $341 million in dividends in the fourth quarter.
For the fiscal year, the company repurchased $3.1 billion of stock under its share repurchase program and paid $1.3 billion in dividends.
Lowe’s shares retreated $8.79, or 9.2%, to $87.00 in early Wednesday trading.
Related Stories
