Lowe's shares fall on concerns of slowing home improvement appetite
Lowe's said Wednesday that it expects Americans' appetite for home improvement to continue into 2022, though it may cool after a boom in do-it-yourself and decorating projects during the pandemic.
Shares were down nearly 4% in premarket trading.
The home improvement retailer said it expects total sales to range from $94 billion to $97 billion in the upcoming fiscal year, including an extra week. It said diluted earnings per share will range between $12.25 and $13.00.It anticipates same-store sales will could drop by as much as 3% or be roughly flat with this year.
It shared the forecast ahead of an analyst meeting on Wednesday morning.
Lowe's sales have gotten a lift from Americans who fixed up their yards, tackled DIY projects and redecorated rooms during the pandemic. Even as some of those "nesting trends" recede, however, its sales have been buoyed by the strong real estate market.
The company beat analysts' expectations in the third-quarter, as it saw more online sales and purchases by home professionals. Same-store sales, which track sales online and at Lowe's stores open for at least 12 months, rose by 2.2% in the three-month period. That's on top of 30.1% growth in the year-ago period.
As of Tuesday's close, Lowe's shares are up 57% this year. Shares closed Tuesday at $252.46, down 1.86%. The company's market value is $170.10 billion.
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