Lowe’s Cos. managed to beat Wall Street estimates in the fourth quarter as comp sales ticked up despite still-soft consumer sales in discretionary items.
Net earnings were $999 million, or $1.78 per diluted share versus $1.13 billion, or $1.99 per diluted share, in the year-prior quarter, the company stated. Adjusted for one-time events, earnings per diluted share were $1.98 versus $1.93 in the year-earlier period.
Analysts polled by Zacks Investment Research forecast earnings per adjusted diluted share of $1.95 and revenues of $20.36.
Comparable sales increased 1.3% year over year in the quarter, driven by ongoing growth in Pro, online and home services sales, as well as a strong holiday performance, Lowe’s pointed out.
Net sales were $20.58 billion versus $18.55 billion in the year-past quarter. Operating income was $1.71 billion versus $1.83 billion in the year-previous period.
For the full fiscal year, net earnings were $6.65 billion, or $11.85 per diluted share, versus $6.96 billion, or $12.23 per diluted share, in the year prior. Net sales were $86.29 billion versus $83.67 billion in the period a year earlier. Operating income was $10.15 billion versus $10.47 billion in the year previous.
In providing guidance for the full fiscal year, Lowe’s indicated that it expected a total sales increase of 7% to 9% with adjusted diluted earnings per share coming in at $12.25 to $12.75.
Bill Boltz, Lowe’s executive vice president of merchandising, said in a conference call, “We delivered positive comps across kitchens and bath, paint and in appliances, where we continue to build on our market leadership position. With the widest assortment of leading brands, competitive pricing, and rapid delivery, consumers are turning to Lowe’s more often for their appliance needs.”
As part of the conference call, Marvin Ellison, Lowe’s chairman and CEO, said uncertainty continues to pressure big-ticket, discretionary do-it-yourself projects, “as many consumers are reluctant to make significant investments in their homes.”
Ellison added, “We delivered strong results this quarter, as our ‘Total Home’ strategy is resonating with both our Pro and DIY customers, which was evident during a great holiday season. While the housing macro remains pressured, we are focused on directing what is within our control, which includes our ongoing productivity initiatives. We remain confident that we are well-positioned to take share regardless of the macro environment.”.
