Lowe's Companies Inc shares fell 5% in pre-market trading after it lowered full-year guidance on the back of lower than expected DIY sales.
The Mooresville, North Carolina-based home improvement retailer now expects full year sales of around $86 billion, down from previous guidance of $87–$89 billion, with like-for-like sales seen falling by 5% compared to previous forecasts for a drop of 2%-4%.
Adjusted diluted EPS is predicted of $13.00, down from between $13.20-$13.60 before.
The reduced guidance came as the firm reported a 7.4% fall in like-for-like sales in the third quarter ended November 3.
Marvin Ellison, Lowe's chairman, president and chief executive said the drop the firm experienced a “greater-than-expected pullback in DIY discretionary spending, particularly in bigger ticket categories.”
“Given our 75% DIY mix, the DIY pressure disproportionately impacted our third quarter comp performance,” he added.
Total sales fell to $20.47 billion from $23.48 billion the year before, but net earnings rose to $1.77 billion from $154 million although the prior year’s figure included a $2.1 billion impairment charge related to the Canadian business.
Adjusted diluted EPS totalled $3.06, compared to an adjusted figure of $3.27 the year before.
Lowes said the drop in sales reflected a decline in DIY discretionary spending, partially offset by positive Pro customer comp sales.