Lowe’s Companies reported adjusted earnings of $4.40 per share for the third quarter, surpassing analysts’ expectations of $4.22. However, its net sales of $25.96 billion fell short of the $26.13 billion consensus, marking a 0.7% shortfall, with comparable sales rising only 0.2%. Following the earnings announcement, Lowe’s shares dropped by 3.1% in pre-market trading.
The company’s management downgraded its full-year sales outlook to $92 billion from a previous range of $92-$94 billion, with no projected growth in comparable sales. This guidance contrasts sharply with Home Depot, which reported comparable sales growth of 1.7%. Furthermore, Lowe’s gross margin decreased by 77 basis points to 33.04%, while net earnings remained flat at $2.399 billion. The rise in long-term debt to $35.2 billion from $30.5 billion last year was also notable, attributed to acquisitions that have strained its operating cash flow, which fell to $7.0 billion from $7.6 billion.
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