Lowe’s Cos Inc (LOW.N) forecast full-year sales below market expectations on Wednesday, hit by weak demand for home improvement products as inflation forces consumers to pause spending on home-related projects.
A pandemic-fueled boom in demand for home improvement products is now fading as houshold budgets come under pressure from higher prices for everyday essentials.
Larger rival Home Depot Inc (HD.N) had also last week warned of a moderation in demand this year, while struggling with elevated costs and wage raises.
Lowe’s said it expected full-year total sales of $88 billion to $90 billion, while analysts on average estimated annual revenue of $90.48 billion, according to Refinitiv data.
The company also forecast 2023 earnings between $13.60 and $14.00 per share, compared with analysts’ average estimate of $13.79 per share.
For the fourth quarter, Lowe’s reported a 1.5% decline in comparable sales, worse than expectations of a 0.01% drop.
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