Lowe's Q2 performance was weak! Revenue was lower than expected and profits declined!

It is learned that Lowe's, the second largest home improvement retailer in the United States, reported on Tuesday (August 22) that both profits and sales in the second quarter of 2023 fell year-on-year.

The financial report shows that Lowe's net profit in the second quarter of this year was US$2.7 billion, down 12% from US$2.99 ​​billion in the previous year. Diluted earnings per share (EPS) was US$4.56, lower than US$4.67 in the same period last year, but higher than Wall Street's expectation of US$4.49.

Total revenue for the quarter was $24.96 billion, down about 9% from $27.48 billion a year ago and slightly below analysts' expectations of $24.99 billion. The company said same-store sales fell slightly by 1.6% as a strong recovery in spring consumption and growth in professional and online sales partially offset the impact of deflation in lumber and lower demand for non-essential items such as DIY.

"During the quarter, our investments in our Total Home strategy continued to drive growth in our specialty and online businesses," said Marvin R. Ellison, Lowe's chairman, president and chief executive officer. "We recently launched same-day delivery nationwide and expanded our rural merchandising framework to approximately 300 stores. We are well positioned to reduce costs while improving customer service, and we remain confident in the mid- to long-term outlook for the home improvement industry."

Lowe's reiterated its full-year 2023 guidance, expecting revenue between $87 billion and $89 billion, same-store sales to decline 2% to 4% year-over-year, adjusted operating margin to be between 13.4% and 13.6%, earnings per share to be between $13.20 and $13.60, and capital expenditures of $2 billion.

Editor ✎ Nicole/

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