Lowe Q4 Net Sales Rise

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Lowe Q4 Net Sales Rise

Lowe's Q4 Net Sales Rise Above Forecasts

Lowe's (LOW) has released the report for its net sales during Q4, which came out higher than the forecasts. Given that the home improvement sector is going through a slowdown, this number was impressive for Lowe's.

If we look around, only some things are good with all the companies in the sector. For example, Home Depot (HD) is a significant competitor of Lowe's and has posted weak numbers due to lower consumer spending. Home Depot said high-interest rates and high inflation impacted sales.

Comparable Sales Down By 6.2%

But, if we look at comparable sales of Lowe's, they are down by 6.2% during three months. According to Lowe's, this was due to a slowdown in the demand for DIY projects amid unfavourable winter weather.

look at the total sales of Lowe's shows a decline of almost -17% against the earlier reading of around $18.60 billion. For this figure, Lowe's added that the corresponding quarter received a boost of around $1.4 billion. According to estimates from a third party, several $18.47 billion was expected.

Another number revealed in the report was operating income, which came down to around $1.69 billion. Compared to the same period in 2023, the number was $1.70 billion.

According to Lowe's CEO, they expect improved customer satisfaction and operating profit in this quarter. He added that it will be achieved even though the DIY spending has taken a hit.

Another development was that Lowe's has flagged the outlook for 2024. According to the company, they are facing uncertainty on a macroeconomic level in the near term. The company added that the comparable sales will decline by 2 - 3% while the revenue will move from $84 bn to around $85 bn.

After the release of the Q3 numbers, Lowe's shares turned higher, which means the investors are welcoming the report.

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