Tue Nov 19 14:20:00 UTC 2024: ## Lowe’s Beats Earnings Expectations Despite Projected Sales Decline

**Charlotte, NC** – Lowe’s Companies Inc. reported better-than-expected third-quarter earnings on Tuesday, driven by strong sales in outdoor DIY projects, professional services, and online shopping. However, the home improvement retailer projected a year-over-year sales decline for the full year.

For the quarter ending November 1st, Lowe’s net income dipped to $1.7 billion ($2.99 per share), compared to $1.77 billion ($3.06 per share) in the same period last year. Revenue also decreased. Comparable sales fell by 1.1%, a result of reduced demand for larger, more expensive DIY projects. This was partially offset by increased demand related to hurricane repairs and growth in sales to professional contractors.

Despite the lower quarterly revenue, the results surpassed Wall Street’s expectations. Lowe’s revised its full-year sales guidance upward, now projecting total sales between $83 billion and $83.5 billion, compared to its previous forecast of $82.7 billion to $83.2 billion. However, the company still anticipates a comparable sales decline of 3% to 3.5% for the year. This is slightly better than the previously predicted 3.5% to 4% drop, but still reflects a challenging market environment.

This performance echoes a similar trend seen in competitor Home Depot’s recent results. While Home Depot also exceeded earnings expectations, it reported its eighth consecutive quarter of declining comparable sales. Both companies attribute the weaker demand to high interest rates deterring consumers from undertaking larger home improvement projects.

Despite the projected decline, Lowe’s stock price has increased by approximately 22% year-to-date, closing at $271.77 on Monday, giving the company a market value of $154.17 billion. The company’s improved outlook, while still showing a sales decrease, offers a more positive picture than initially anticipated. Analysts will be watching closely to see how the company navigates the ongoing challenges in the home improvement sector.

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