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Still, the home improvement chain said it expects its 2022 per
share profit to be at the top-end of its outlook range of $13.10
to $13.60, thanks to tighter cost control and steady demand from
professional builders, sending its shares up about 4% in
premarket trading.
During the COVID-19 lockdowns last year, Lowe's benefited from
people taking up home renovation projects, but a return to
pre-pandemic work routines and higher inflation have hampered
spending on such projects.
"Our results in the first half were disproportionately impacted
by our 75% DIY (do-it-yourself) customer mix," Lowe's Chief
Executive Marvin Ellison said.
The downbeat sales figures are in contrast to
better-than-expected results from bigger rival Home Depot Inc,
which said on Tuesday demand from both professionals and DIY
customers held up during its second quarter.
Lowe's posted a surprise drop of 0.3% in second-quarter
comparable sales, while analysts on average were expecting a
2.4% increase, according to Refinitiv IBES data.
The company forecast full-year total sales toward the bottom end
of its range of $97 billion to $99 billion, and also expects
comparable sales in the lower end of its prior expectations for
a 1% decline to a 1% rise.
However, the company posted a profit of $4.67 per share in the
second quarter ended July 29, surpassing estimates of $4.58,
owing to a drop in costs. Selling, general and administrative
expenses as a percentage of sales was 16.2% for the quarter,
compared with 17% last year.
(Reporting by Praveen Paramasivam and Deborah Sophia in
Bengaluru; Editing by Shinjini Ganguli)
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