Lowe's Companies Inc LOW reported a second-quarter FY23 sales decline of 9.17% year-on-year to $24.96 billion, marginally missing the analyst consensus of $24.99 billion. Comparable sales decreased 1.6%.
The company saw strong spring recovery and Pro and online sales growth, partially offsetting lumber deflation and lower DIY discretionary demand.
EPS of $4.56 beat the analyst consensus estimate of $4.49.
Gross profit fell 8% Y/Y to $8.4 billion, with a profit margin expanding 42 basis points to 33.66%.
Operating margin expanded 18 basis points to 15.57%, and operating income for the quarter fell 8.1% to $3.9 billion.
The company held $3.9 billion in cash and equivalents as of August 4, 2023. Operating cash flow for six months totaled $5.96 billion.
The company repurchased 10.1 million shares for $2.2 billion and paid $624 million in dividends in the quarter.
Outlook: Lowe's reaffirmed its FY23 revenue outlook of $87 billion - $89 billion, against the Street view of $88.08 billion.
It sees FY23 Adjusted EPS of $13.20 - $13.60 against the consensus of $13.37.
LOW expects FY23 comparable sales to decline 2%-4%.
Price Action: LOW shares are trading higher by 2.97% at $224.05 in premarket on the last check Tuesday.
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