-- Lowe’s (NYSE:) has lowered its full-year financial guidance, as the home improvement retailer said it was hit by a larger-than-anticipated pullback in consumer spending on big-ticket items in its third quarter.
The North Carolina-based company said it now expects to deliver annual adjusted diluted earnings per share of about $13.00, down from its prior outlook of $13.20 to $13.60, although the reporting period is one week shorter than the prior year. The projection for total sales was also slashed to approximately $86 billion from a range of $87B-$89B.
Lowe's announcement points to somewhat dour expectations for the group's current quarter, which includes the crucial holiday shopping season. Like rival (NYSE:), the firm has faced a slowdown in purchases of pricier items, in a sign that inflation-squeezed customers are reining in spending on major at-home projects.
In the three months ended on Nov. 3, Lowe's Chairman Marvin Ellison said this downturn in DIY spending was "greater-than-expected [...] particularly in bigger ticket categories."
"Given our 75% DIY mix, the DIY pressure disproportionately impacted our third quarter [comparative] performance," Ellison noted. However, he added that this headwind was partially offset by strength at its Pro business, which supplies materials to professional builders, contractors and handymen.
Per-share income during the quarter came in at $3.06, while net sales slipped by 13 percent versus the corresponding period last year to $20.47B. Bloomberg consensus estimates had seen the figures at $3.07 and $20.91B, respectively.
Shares in Lowe's slumped in premarket U.S. trading on Tuesday.
Best Buy warns of holiday-quarter sales drop and lowers annual revenue outlook By