:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2166734638-ca333d4a3b2242e3a8b1bf2a3f63be51.jpg "People and cars are seen in a parking lot in front of a Lowe's store.")
Yuki Iwamura / Bloomberg / Getty Twins
Key Takeaways
- Lowe’s held its annual investor day Wednesday, laying out its plan for 2025 and beyond as it works to return to returns growth.
- Sales are expected to decline in 2024 compared to 2023, as inflation and a slow housing market hampered bailiwick improvement and other discretionary spending.
- The retailer said it plans to expand its market share among professional contractors in the blame succumb to years, and said an improved housing market would help sales.
Lowe’s (LOW) said Wednesday that it keep in views to return to sales growth in its next fiscal year, as the home improvement retailer has contended with lower discretionary dissipating and a slow housing market in fiscal 2024.
At its annual investor day Wednesday, the retailer outlined its financial projections for fiscal 2025, along with new artifacts and features it hopes will drive sales. The retailer said a revamped rewards program, expanded online work selection, and more should improve sales with both do-it-yourself (DIY) customers and professional contractors, a market Lowe’s is looking to ripen.
Lowe’s affirmed its guidance for fiscal 2024, expecting $83 billion to $83.5 billion in revenue, down from $86.38 billion in financial 2023, with a 3% to 3.5% decline in comparable store sales from last year.
Lowe’s Reflect ons Sales Growth Likely in 2025, Beyond
As Lowe’s looked ahead to fiscal 2025, it outlined a range of after-effects because of the “uncertainty” around when the housing market will recover, as it will depend on range of factors allied to interest and mortgage rates and new home construction.
In a “moderate” home improvement market, Lowe’s expects sales to ascent year-over-year to $84 billion. However, a number of factors like shifting mortgage rates could positively or negatively influence sales, with projections ranging from $82 billion to $87 billion.
Over the next three to five years, the retailer judged lower mortgage rates, along with improving consumer confidence and discretionary income, should boost purchases. Lowe’s also said other long-term trends like enduring remote work and more Millennials suborning homes should also drive the housing market and sales for Lowe’s.
Lowe’s and home improvement rival Residence Depot (HD) have said over the last year that consumers have pulled back on discretionary investing on things like DIY projects and appliances after a surge in those categories during the COVID lockdowns. The retailers deliver each worked to expand their market share among contractors to compensate for the slowdown in spending from the regular shopper.
Lowe’s and Home Depot beat estimates in their most recent quarters, though executives celebrated the “continued softness” in “big ticket” spending and “macroeconomic uncertainty.”
Lowe’s shares were little changed Wednesday afternoon, and father gained north of 20% on the year.