Lowe’s 3Q Sales Fall 7.4% on Slumping DIY - Modern Distribution Management

Log In

Lowe’s 3Q Sales Fall 7.4% on Slumping DIY

Based on lower-than-expected DIY sales, partially offset by positive Pro customer comp sales, Lowe's updated its outlook for the year.
Source: Lowe's
Author
Date

On Nov. 21, Lowe’s Companies reported third-quarter sales were down 7.4% to $20.5 billion, a slump attributed to a greater-than-expected pullback in Do-It-Yourself discretionary spending, but partially offset by positive Pro customer comp sales.

The North Carolina-based retailer reported third-quarter net earnings of $1.8 billion and diluted earnings per share of $3.06 for the quarter ended Nov. 3, 2023, compared to diluted EPS of $0.25 in the 3Q 2022.

“Given our 75% DIY mix, the DIY pressure disproportionately impacted our third quarter comp performance,” Lowe’s Chairman, President and CEO Marvin Ellison said. “At the same time, our investments in Pro continue to resonate, resulting in positive Pro comps again this quarter.”

Despite pressure on and caution in the Pro market, Ellison has had a positive perspective on the segment this year. During the 2Q earning report, he said the company’s strategic plan has continued to drive sales growth in the Pro segment, which is largely made up of contractors typically served by wholesale distributors. Check out this deep dive into Lowe’s Pro-focused initiatives on MDM Premium. 

DIY and Pro sales figures were not released with the earnings.

Lowe’s Updated 2023 Guidance

Based on lower-than-expected DIY sales, the company is updating its outlook for the operating results of full year 2023:

  • Total sales of approximately $86 billion (previously $87 – $89 billion)
  • Comparable sales expected to be down approximately -5% as compared to prior year (previously down -2% to -4%)
  • Adjusted operating income as a percentage of sales (adjusted operating margin) of approximately 13.3% (previously 13.4% to 13.6%)
  • Interest expense of approximately $1.4 billion (previously $1.5 billion)
  • Adjusted effective income tax rate of approximately 25%
  • Adjusted diluted earnings per share of approximately $13.00 (previously $13.20 to $13.60)
  • Capital expenditures of up to $2 billion

Related Posts

Share this article

About the Author
Recommended Reading
Leave a Reply

Leave a Comment

Sign Up for the MDM Update Newsletter

The MDM update newsletter is your best source for news and trends in the wholesale distribution industry.

Get the MDM Update Newsletter

Wholesale distribution news and trends delivered right to your inbox.

Sign-up for our free newsletter and get:

  • Up-to-date news in a quick-to-read format
  • Free access to webcasts, podcasts and live events
  • Exclusive whitepapers, research and reports
  • And more!

2

articles left

Want more Premium content from MDM?

Subscribe today and get:

  • New issues twice each month
  • Unlimited access to mdm.com, including 10+ years of archived data
  • Current trends analysis, market data and economic updates
  • Discounts on select store products and events

Subscribe to continue reading

MDM Premium Subscribers get:

  • Unlimited access to MDM.com
  • 1 year digital subscription, with new issues twice a month
  • Trends analysis, market data and quarterly economic updates
  • Deals on select store products and events

1

article
left

You have one free article remaining

Subscribe to MDM Premium to get unlimited access. Your subscription includes:

  • Two new issues a month
  • Access to 10+ years of archived data on mdm.com
  • Quarterly economic updates, trends analysis and market data
  • Store and event discounts

To continue reading, you must be an MDM Premium subscriber.

Join other distribution executives who use MDM Premium to optimize their business. Our insights and analysis help you enter the right new markets, turbocharge your sales and marketing efforts, identify business partners that help you scale, and stay ahead of your competitors.

Register for full access

By providing your email, you agree to receive announcements from us and our partners for our newsletter, events, surveys, and partner resources per MDM Terms & Conditions. You can withdraw consent at any time.

Learn More about Custom Reports

Request a Market Prospector Demo

  • This field is for validation purposes and should be left unchanged.