This headline was amended at 6:07 a.m. ET to emphasize that the earnings per share represent an adjusted amount.
Lowe’s Achieves Increase in Earnings Despite Decline in Sales
In the fourth quarter, Lowe’s saw growth in earnings even as sales decreased, thanks to improvements in gross margin and reduced overhead costs. The home-improvement retailer reported a profit of $1.02 billion for the quarter ending Feb. 2, surpassing the $957 million recorded in the same period a year earlier.
Strong Earnings Performance
Earnings per share stood at $1.77, exceeding analysts’ expectations of $1.68 per share, according to FactSet. Despite a drop in quarterly revenue from $22.45 billion to $18.6 billion year-over-year, Lowe’s beat analyst forecasts of $18.47 billion.
Strategic Business Decisions
Lowe’s decided to divest its Canadian retail business last February which generated around $958 million in the year-ago quarter. This move was reflected in the company’s performance and financial reporting for the latest quarter.
Future Outlook and Projections
Looking ahead to the fiscal year, Lowe’s anticipates earnings ranging from $12 to $12.30 per share on revenue of $84 billion to $85 billion. Contrary to analysts’ current predictions of $12.68 per share on $85.36 billion for fiscal 2024, Lowe’s expects comparable sales to decline by 2% to 3% in the upcoming year.