Lowe’s Cos. delivered a revenue outlook that missed analyst estimates and said it expects home improvement demand to slow next year.
The retailer expects sales of about $94 billion to $97 billion for the year ending in January 2023, short of the $97.9 billion average estimate of analysts surveyed by Bloomberg.
The company had just raised its sales forecast last month but now says the home-improvement pandemic boom is finally waning in the absence of government stimulus checks and as U.S. consumers shift spending to other categories. The shares, which have been trading near record highs, rose less than 1% in midday trading.
Chief Financial Officer Dave Denton said during the company’s presentation to investors on Wednesday that the “home improvement sector is likely to contract modestly” in the coming year.
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