Lowe’s had a disappointing sales outlook for investors this week, with the company bringing up concerns that the pandemic’s increase in DIY projects is now tapering off, CNBC writes.
The company’s shares were down 4% in premarket trading on Wednesday (Dec. 15). But they rose later on in the day, with data from homebuilders showing the mass need for housing.
In an analyst meeting, CFO Dave Denton said Lowe’s thinks the sales will do better than competitors and that home professionals will choose the store over others.
But he said there could be a minor pullback in 2022 after a year with this much demand. Lowe’s has seen a high surge in sales from Americans spending the pandemic fixing their yards and doing various room redecorations and other personal projects.
But CNBC writes that even if the trends are starting to recede, sales have been strong anyway because of the robust real estate market.
CEO Marvin Ellison said the company planned to spur growth through new private label launches, more eCommerce focus, and becoming a destination for older adults looking to age in their own homes.
Ellison said the company is launching a new modern décor brand, Origin 21. And he said Lowe’s would likely benefit from factors like more money in customers’ savings accounts, low interest rates and rising home values.
Lowe’s said its same-store sales could fall by around 3% or be flat in 2022 compared to how this year has gone.
According to data from Refinitiv, same-store sales will likely range from $94 billion to $97 billion in the next year, below the estimates of $97.64 billion. And Lowe’s is estimating sales of around $95 billion for this year.
In November, PYMNTS reported that Lowe’s was seeing its sales remain steady, with $22.9 billion in total sales for Q3. That was an increase from 2020’s amount of $22.3 billion.
See more: Lowe’s Sales Steady as Consumers Continue Investments in Home
The sales were also up around 2.2% in that period, and U.S. sales rose 2.6%.
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