(Sharecast News) - US home improvement retailer Lowe's reported fourth-quarter revenue that met analysts' expectations on Tuesday, as it fell 17.1% year-on-year to $18.6bn.
Its earnings per share came in at $1.77, outperforming analyst estimates by 6.2%, as it reported a GAAP profit of $1bn for the quarter, down from $1.58bn in the same quarter of the prior year.
Lowe's reported a 6.2% decrease in comparable sales for the quarter, which it attributed to decreased demand in DIY projects and adverse winter weather conditions in January.
It operated 1,746 stores as of 2 February, representing a slight increase of eight stores over the last 12 months.
During the quarter, Lowe's repurchased 1.9 million shares worth $404m, making for a total of 29.9 million shares for $6.3bn throughout the year.
In addition to share repurchases, Lowe's distributed $633m in dividends for the fourth quarter and $2.5bn for the 2023 financial year, amounting to a total return of $8.9bn to shareholders.
Looking ahead, Lowe's acknowledged near-term macroeconomic uncertainty in its 2024 outlook, setting expectations for $84bn to $85bn in total sales.
That fell short of analysts' expectations by 1.3%, indicating a projected decline of 2.2% compared to 2023.
It said it expected a decline of 2% to 3% in comparable sales, while it forecast its operating margin to be between 12.6% and 12.7%.
Diluted earnings per share for 2024 were set to be between $12 and $12.30, with capital expenditure of around $2bn.
"This quarter we delivered strong operating profit and improved customer satisfaction, despite the continued pullback in DIY spending," said chairman Marvin Ellison.
"We remain confident in the long-term strength of the home improvement market, and we are making the right investments in our 'Total Home' strategy to take share.
"We are also pleased to award $140m in discretionary bonuses to our frontline associates in recognition of their exceptional customer service in 2023."
At 0810 EST (1310 GMT), shares in Lowe's Companies were down 0.57% in pre-market trading on the New York Stock Exchange, at $230.00.
Reporting by Josh White for Sharecast.com.