Home improvement retailer Lowe’s reported mixed fiscal second-quarter earnings on Tuesday and slashed its full-year forecast amid expectations for weakening demand for its products in the second part of the year.
Lowe’s adjusted earnings per share in Q2 came at $4.10, beating the analysts’ expectations of $3.97 per share. However, the company’s revenue of $23.6 billion came slightly below the estimates of $23.91 billion and marked a decline from $25.0 billion in the same period last year.
The declining sales have prompted Lowe’s to cut its total sales forecast from $84 to $85 billion to $82.7 to $83.2 billion. It also expects to have a 3.5% to 4% fall in comparable sales versus the previously expected 2% to 3% fall. Additionally, the company lowered its adjusted diluted earnings per share prediction from $12.00 to $12.30 to $11.70 to $11.90.
Speaking with CNBC, Lowe’s CEO Marvin Ellison said that the customers are choosing to put their renovation projects on hold until the interest rates drop.
“Inflation remains high. And big-ticket purchases are being delayed as customers sit back and wait for interest rates to fall,” Ellison explained.
Lowe’s stock experienced a slight slide on Tuesday, dropping by 1.18% to close at $240.33 per share. The company’s shares still remain 9.92% up year-to-date.