(Reuters) – Lowe’s (NYSE:) lowered its annual revenue and comparable gross sales forecasts on Tuesday, as hopes of a restoration in big-ticket dwelling enchancment initiatives flip dim within the face of cautious shopper spending.
Greater borrowing and mortgage charges have led to subdued demand for brand spanking new properties — an element that weighed on gross sales at Lowe’s and Residence Depot (NYSE:).
Placer.ai information confirmed that fewer new dwelling gross sales in Might and June pressured retailer site visitors for the house enchancment corporations.
Residence Depot additionally forecast a decline in annual earnings and an even bigger drop in annual comparable gross sales, signaling that revival of shopper demand for pricier items akin to dwelling enchancment gear stays tough.
Lowe’s now expects full-year adjusted earnings per share of about $11.70 to $11.90, in contrast with its prior forecast of about $12.00 to $12.30.
The corporate expects comparable gross sales for 2024 to fall between 3.5% and 4%, in contrast with its earlier forecast of a 2% to three% drop.
Shares of the corporate have been down about 1% in premarket buying and selling. They have been up about 9% this yr as of final shut.