Lowe's Companies Inc (NYSE:LOW) lowered its full-year sales forecast on Tuesday after reporting disappointing second-quarter results, as high interest rates and inflation continued to weigh on consumer spending in the home improvement sector.
The company reported a 5.6% decline in quarterly sales, falling to $23.59 billion, short of Wall Street's expectation of $23.91 billion.
Same-store sales, a key indicator of retailer performance, dropped 5.1%, exceeding the anticipated 4.43% decline.
Lowe's cited "continued pressure" on big-ticket do-it-yourself projects, such as flooring and kitchen renovations, along with poor weather that impacted outdoor sales.
Despite challenges, Lowe's saw growth in its Pro and Online businesses, with adjusted earnings per share reaching $4.10, beating analysts' estimates of $3.97.
Looking ahead, Lowe's now expects full-year sales to range between $82.7 billion and $83.2 billion, down from its previous forecast of $84 billion to $85 billion. The company also anticipates a decline in same-store sales between 3.5% and 4%, compared to the prior estimate of a 2% to 3% decrease.