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Higher mortgage rates are keeping consumers from buying new homes and instead renovating their existing properties, which has buoyed demand at home improvement chains at a time when spending on paint and tools has slowed from the pandemic peak.
Lowe’s upbeat earnings forecast comes in contrast with comments from larger rival Home Depot Inc (NYSE:HD), which on Tuesday left its annual forecasts unchanged despite beating quarterly results estimates, blaming “mixed signals” around demand amid a slowing housing market.
Lowe’s said it now expects full-year earnings of $13.65 to $13.80 per share, compared with its prior estimate of $13.10 to $13.60.
Analysts on average forecast annual profit of $13.54 per share, Refinitiv IBES data showed.
The company’s same-store sales rose 2.2% in the third quarter, compared with analysts’ average estimate of a 0.9% increase.
