Lowe’s (NYSE:LOW) shares rose more than 3% intra-day on Tuesday after the company announced fourth-quarter revenue that exceeded analysts’ expectations, despite a downturn in home improvement spending.
During the quarter, comparable sales fell by 6.2%, attributed by the company to a decrease in DIY activity and adverse weather conditions in January.
The company’s total revenue for the quarter decreased by 17% year-over-year to $18.60 billion, although this figure was slightly inflated in the previous year by an extra week, contributing $1.4 billion to that period’s total. This latest figure surpasses the consensus forecast of $18.47 billion. Operating profit marginally decreased to $1.69 billion from $1.70 billion year-over-year.
Looking ahead to the full year of 2024, Lowe’s forecasts a 2% to 3% drop in comparable sales from the previous year. The company projects total revenues to be between $84 billion and $85 billion, with diluted earnings per share estimated to be in the range of $12.00 to $12.30.