Lowe's to follow Home Depot in reporting earnings as core DIY consumers pull back on spending

Key Points

  • Lowe's is expected to post relatively soft Q4 and fiscal 2024 results, with revenue lower than last year at $18.3 billion.
  • Adjusted earnings are projected to grow to $1.84 per share, up from $1.77 last year.
  • Same-store sales are expected to decline by 1.91% due to reduced foot traffic, offset slightly by an increase in average ticket size.
  • Analysts are optimistic about Lowe's potential in 2025, especially with a return of DIY customers.
  • The company faces challenges from a shift towards services and high interest rates affecting consumer spending.

Summary

Lowe's, the home improvement retailer, is anticipated to report relatively weak results for the fourth quarter and fiscal year 2024, with expected revenue of $18.3 billion, down from last year's $18.6 billion. Despite this, adjusted earnings per share are projected to increase to $1.84 from $1.77. The company's same-store sales are expected to decline by 1.91%, attributed to a drop in foot traffic, although this is somewhat mitigated by a slight rise in average ticket size. Analysts like Seth Basham from Wedbush are optimistic about Lowe's future, particularly in 2025, due to its exposure to larger discretionary products and the DIY market. However, Lowe's faces headwinds from a consumer shift towards services and persistent high interest rates impacting spending. The company's performance is also compared to Home Depot, which recently reported slightly better than expected results, highlighting the competitive landscape in the home improvement sector.

yahoo
February 25, 2025
Stocks
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