Shoppers load a box of merchandise into a truck after visiting a Lowe's hardware store in Philadelphia, Pennsylvania, U.S. November 4, 2020.
REUTERS/Mark Makela/File Photo Acquire Licensing RightsNov 21 (Reuters) - Lowe's Cos (LOW.N) on Tuesday projected a bigger drop in annual comparable sales than previously expected and trimmed its profit forecast as inflation-hit consumers cut back spending on home-improvement projects, sending its shares down 6%.
Lowe's saw a "greater-than-expected pullback in DIY discretionary spending, particularly in bigger ticket categories" in the third quarter, CEO Marvin Ellison said.
The company reported a 7.4% drop in same-store sales for the three months ended Nov. 3, compared with analysts' average estimate of a 5% drop, according to LSEG IBES data.
Lowe's now expects full-year comparable sales to decline 5%, compared with its prior outlook for a 2% to 4% drop.
Persons:
Mark Makela, Cos, Lowe's, Marvin Ellison, Deborah Sophia, Anil D'Silva
Organizations:
REUTERS, Home, Thomson
Locations:
Philadelphia , Pennsylvania, U.S, Lowe's, Placer.ai, Bengaluru