Here's What's Driving Lowe's Stock Lower Today
With nothing more than a quick glance at last quarter's core numbers, shares of Lowe's (NYSE: LOW) should be higher today. Sales as well as earnings were better than expected. Dig deeper, though. Not only were the retailer's revenue and per-share profits down year over year, but the company reported its stores are still suffering shrinking sales, with no real relief in sight. The results were bad enough to leave Lowe's stock down 4% as of mid-session Tuesday.
Lowe's turned $20.2 billion in sales into a per-share operating profit of $2.89 during the three-month stretch ending in early November. Although these numbers topped consensus estimates of just under $20 billion and $2.82 per share, both were down from year-ago comparisons of $20.5 billion and $3.06 per share. Fanning the bearish flames was a same-store sales decline of 1.1%. The disappointing results extend weakness that first materialized last year.
Management explains that many consumers are postponing home improvement projects, strained by inflation and other logistical headwinds (which include the lingering impact of two major hurricanes).
Source Fool.com
