Lowe’s booked lower net income last fiscal year, which according to an analyst, reflects weaker consumer spending on home improvement.
The company’s net earnings fell 20 per cent to $7.7 billion as net sales dipped 11 per cent to $86.4 billion.
“Lowe’s has been hit with the full force of the slowdown in home improvement and the general pullback in consumer spending on all things for the home,” said GlobalData MD Neil Saunders.
He noted that Lowe’s comparable sales dip of 6.2 per cent is almost double rival Home Depot’s decline.
“It is an indication that Lowe’s is not only losing sales but is also losing ground and market share within the wider home improvement market,” said Saunders.
“One of the reasons for the relative underperformance of Lowe’s compared to its larger rival, is that it is more exposed to a more casual and occasional DIYer.”
For the current fiscal year, the retailer forecasts total sales of $84 to $85 billion and comparable sales to decline 2 per cent to 3 per cent.
“We remain confident in the long-term strength of the home improvement market, and we are making the right investments in our Total Home strategy to take share,” said Lowe’s chairman, president, and CEO Marvin R Ellison.
