January 14, 2022

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Lowe’s gives sales outlook as home improvement rush slows

Wall Street analysts expect professional spending to outpace do-it-yourself spending going forward. To offset some of that decline, Lowe’s has been investing in products and services for professional contractors such as adding more national brands and revamping its supply chain to facilitate better delivery options.

For next year, the company said it sees comparable sales in a range of down 3% to flat. Lowe’s still expects revenue of about $95 billion in the current fiscal year, compared to the average estimate of $95.7 billion.

Executives expect higher distribution costs from the long-term impact of supply chain disruptions will pressure margins next year. Keith Hughes, an analyst at Truist Securities Inc., said in a note to clients that “just about every supplier” to Lowe’s is raising prices in the second half of 2021 or first half of 2022. 

“We are not immune to the pressures in the rising cost environment,” Denton told investors.

See Ad Age’s 2021 Marketers of the Year here.

—Bloomberg News