Lowe's(US:LOW) Zhi Tong Cai Jing·2025-11-19 12:49Core Viewpoint - Lowe's Companies, Inc. reported a lackluster outlook for annual profits and sales growth, similar to its competitor Home Depot, due to economic uncertainty and high inflation affecting consumer spending on home renovations [1][2]. Financial Performance - For the third quarter, Lowe's revenue was $20.81 billion, slightly below the market expectation of $20.82 billion, while adjusted earnings per share were $3.06, exceeding the average market forecast of $2.97 [1]. - The company raised its full-year sales forecast to $86 billion, up from the previous estimate of $84.5 billion to $85.5 billion, attributed to a recent acquisition [1]. - The adjusted earnings per share forecast was lowered to approximately $12.25, down from the previous range of $12.20 to $12.45 [2]. Market Conditions - The home improvement industry continues to face challenges, including a slowing real estate market and rising borrowing costs, which have impacted the sector for over two years [2]. - Despite a slight decrease in mortgage rates following Federal Reserve rate cuts, various cost pressures on households have weakened the anticipated demand recovery [2]. Strategic Initiatives - Lowe's has invested billions in acquiring Foundation Building Materials and Artisan Design Group to enhance its appeal to professional contractors, aligning its strategy with that of Home Depot [3]. - The company expects same-store sales to remain flat year-over-year, a revision from the previous expectation of flat to 1% growth [4]. Sales Trends - Despite the challenges, Lowe's CEO noted that November sales achieved positive year-over-year growth, even without significant storm impacts affecting demand [4]. - According to data compiled by LSEG, same-store sales grew by 0.4% for the quarter ending October 31, surpassing the average analyst expectation of 1% [4].