(Reuters) -Home improvement retailer Lowe’s (LOW) forecast a slower-than-expected drop in annual comparable sales on Tuesday as a pickup in hurricane-related demand and favorable weather boosted quarterly sales, even as big-ticket spending remained strained.
The company also reported a smaller drop in third-quarter comparable sales than anticipated, in line with bigger rival Home Depot, which last week cited higher demand for building materials and paints amid hurricane rebuilding efforts.
Hurricanes Helene and Milton devastated parts of the United States, including Florida and North Carolina, causing extensive damage to homes, bridges, power infrastructure and crops.
“Our results this quarter were modestly better than expected, even excluding storm-related activity, driven by high-single-digit positive comps in Pro, strong online sales and smaller-ticket outdoor DIY projects,” Lowe’s CEO Marvin Ellison said.
The company reported a 1.1% drop in same-store sales for the quarter ended Nov. 1, better than analysts’ average estimate of a 2.86% decline, according to data compiled by LSEG.
It now expects same-store sales to be down 3% to 3.5% in 2024 from its previous target of a decline in the range of 3.5% to 4% from the previous year.
On an adjusted basis, it forecast earnings per share in the range of $11.80 to $11.90 from a prior target of $11.70 to $11.90 per share.
(Reporting by Savyata Mishra in Bengaluru; Editing by Pooja Desai)
