(AOF) – Lowe’s fell 2.16% to $200.03 in New York after reporting mixed results in the third quarter leading to a lowering of its 2023 outlook. The number two American DIY retailer posted a profit this quarter net of $1.8 billion and diluted earnings per share (EPS) of $3.06. A year ago, at the same period, net profit was $866 million and EPS was $0.25. Its sales over this period amounted to $20.5 billion compared to $23.4 billion in the third quarter of 2022.
Its gross margin increased from $7.81 billion to $6.89 billion in one year.
“In the third quarter, the company delivered strong operational performance…despite a larger-than-expected decline in discretionary DIY spending, particularly in higher-cost product categories,” CEO Marvin said R. Ellison.
Pessimistic, Lowe’s has decided to lower its 2023 annual forecasts. From now on, it anticipates sales of around $86 billion compared to previously between $87 and $89 billion.
Its adjusted operating profit as a percentage of sales is expected at 13.3% compared to 13.4% to 13.6% previously.
Finally, its adjusted diluted earnings per share should be around $13 (previously $13.20 to $13.60).
During this third quarter, Lowe’s repurchased approximately 7.3 million shares for $1.6 billion and paid $642 million in dividends.
Last week, its competitor Home Depot revealed its third quarter financial results. This company had climbed more than 6% on the New York stock market after beating quarterly profit estimates and posting a smaller than expected drop in sales.
This specialist in DIY stores reported a net profit of $3.81 billion for the third quarter, down 12.2%. Reported per share, it comes out to 3.81 dollars against 4.24 dollars a year earlier, compared to a consensus of 3.75 dollars. Between August and October, turnover reached $37.71 billion, a decline of 3% year-on-year.
© 2023 Agence Option Finance (AOF) – All reproduction rights reserved by AOF. AOF collects its data from the sources it considers the safest. However, the reader remains solely responsible for their interpretation and use of the information made available to them. The reader must therefore hold AOF and its contributors harmless from any claim resulting from this use. Agence Option Finance (AOF) is a brand of the Option Finance group
Did you like this article ? Share it with your friends using the buttons below.
