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(Sharecast News) - Lowe's Companies warned of ongoing uncertainty in the US home improvement market on Wednesday, after its full-year forecasts disappointed.
Posting fourth-quarter numbers, the American DIY chain said it expected total sales for the current fiscal year to come in between $92bn and $94bn, an increase of between 7% and 9%, with comparable sales flat to 2%. Analysts, however, had been looking for underlying sales growth of 2%.
Adjusted earnings per share were slated to come in between $12.25 and $12.75 in fiscal 2026, against Wall Street expectations for $12.95.
The retailer said the outlook "reflects the ongoing uncertainty in the home improvement market".
As at 1330 GMT, the stock had lost 3% in pre-market trading.
In common with rival The Home Depot, which posted fourth-quarter numbers on Tuesday, high borrowing costs, weak consumer sentiment and an uncertain economic backdrop have suppressed the US housing market and demand for DIY projects.
Lowe's net sales rose to $20.6bn in the three months to 30 January, from $18.6bn a year previously. Comparable sales were up 1.3%, supported by a robust holiday performance and solid demand from professional customers.
Higher costs saw net earnings slide to $999m from $1.1bn, although both earnings and sales were ahead of forecasts.
Over the year, net sales rose to $86.3bn from $83.7bn, while net earnings eased to $6.7bn from $7bn.
Marvin Ellison, chief executive, said: "While the housing macro remains pressured, we are focused on directing what is within our control, which includes our ongoing productivity initiatives.
"We remain confident that we are well-positioned to take share regardless of the macro environment."
Mooresville-based Lowe's has more than 2,000 home improvement stores across the US.