HomeIndustriesLowe's Cuts Annual Forecasts Amid Downturn in Household Goods Demand

Lowe’s Cuts Annual Forecasts Amid Downturn in Household Goods Demand

Lowe’s Cos Inc cut decreased its sales and profit forecasts for the year on Tuesday following in the footsteps of rival Home Depot. This move indicated the effects of the decline in demand for home improvement goods as persistent inflation continues to limit consumer spending.

In addition to steep inflation, the decline in demand for household items also comes as consumers continue to express a preference to spend on travel and leisure as occurred during the post-pandemic travel boom.

As a result of falling demand, Lowe’s expects its full-year comparable sales to fall between 2% and 4%, compared to its previous forecast which expected sales to remain anywhere between being flat and going down 2%. While same-store sales were previously expected to remain flat, they are now forecast to fall by 2% to 5%.

Lowe’s 2023 adjusted earnings are now projected to be between $13.20 and $13.60 per share. Previously, they were forecasted to be between $13.60 to $14.00 per share.

The home improvement retailer revealed that sales to professional customers, such as builders, contractors, and handymen, were up in the first quarter, in contrast with Home Depot which reported a decline in this market segment.

Zoom Tops Estimates, Raises Full-Year Forecast

Zoom Video Communications reported its earnings for the first quarter of 2024 on Monday and topped the estimates of Wall Street analysts. The communications...

Reddit Stock Jumps on the Back of Open AI Partnership

Social media platform Reddit announced earlier this week that it is partnering up with artificial intelligence start-up Open AI to improve the experience of...

Warren Buffett’s Berkshire Hathaway Reveals Its Secret Stock

For the past three regulatory filings, Warren Buffett’s Berkshire Hathaway has been keeping one of its stock holdings confidential. Now, the conglomerate revealed that...