Lowe’s Posts Solid 4Q Results as Rival ý Depot Stumbles
It was a cold winter for Lowe’s Cos., but sales largely held up. And now, CEO Marvin Ellison said demand for home improvement goods is starting to heat up, one day after rival ý Depot Inc. reported results that fell short.
Fourth-quarter revenue of $15.6 billion was largely in line with estimates. A same-store sales gain of 1.7% also was just short of projections — but Ellison said U.S. comparable sales surged 5.8% in January. That pace tops ý Depot’s 4.1% gain for the month.
Investors may be looking at the results as strong when taking into account bad weather, including a historic cold snap in parts of the United States. RBC Capital Markets analyst Scot Ciccarelli said in a note to clients that the results “were fairly solid given the weather-related headwinds facing the industry.”
The company reiterated its expectations for the current fiscal year, saying same-store sales would rise about 3%. That’s still short of ý Depot’s forecast for a 5% gain, but recent stock gains indicate that investors believe Ellison’s strategy is working.
The company had $1.6 billion in charges during the quarter, including expenses tied to Ellison’s decision to exit poor-performing businesses and close stores. There also was a $952 million goodwill impairment on its Canada division, stemming from the company’s 2016 acquisition of Rona Inc.
