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Lowe’s heads into earnings with DIY demand in focus
Lowe’s will report fiscal second-quarter results on Aug. 19, following a first-quarter that kept comparable sales positive for a fourth straight quarter.
Lowe’s approaches its fiscal second-quarter earnings on Aug. 19, with investors focused on whether weak do-it-yourself demand is stabilizing or worsening in the broader home improvement market. Yahoo Finance notes that Lowe’s is more dependent on DIY customers than Home Depot, making consumer confidence and housing affordability key indicators for traders.
In its fiscal first quarter, Lowe’s posted sales of $23.1 billion, up from $20.9 billion a year earlier, and comparable sales increased 0.6%. The company also cited a 15.5% rise in online sales and strength in appliances, home services, and Pro sales.
Earnings came in at $2.90 diluted EPS, slightly below the prior year’s $2.92, reflecting $96 million of pre-tax expenses tied to acquisitions of Foundation Building Materials and Artisan Design Group. Adjusted diluted EPS increased 3.8% to $3.03, supported by a fourth consecutive quarter of positive comparable sales despite a difficult housing backdrop.
The upcoming report will be closely watched for whether Lowe’s can keep taking market share even if the overall home improvement market stays flat. Yahoo Finance also highlights Lowe’s estimate that about 60% to 65% of revenue comes from DIY customers, underlining how sensitive results could be to consumer caution.