NEW YORK- Cos of Lowe reported lower than expected quarterly results on a slow start in the spring of sale of the season, which prompted the chain of renovation home second in the world to cut its forecast for the year.
Colder weather that normal hurt the demand for seasonal products and kept shoppers away in many regions of the United States, the main market of Lowe. Also, the demand for expensive house projects was low, as the owners remained cautious in an uneven economy.
The disappointing results in a sale season key renewal of concerns about demand in the largest economy in the world, and pushed the shares of Lowe down 1.5% at $25.38 Monday. Shares of Wolseley, the world largest heating and plumbing Distributor, also fell on the news.
Industry in the renovation of the houses "suffers from a cold spring storm, drought for four years on the housing market and a rise in prices of food and fuel, all of which are conspiring to push the discretionary application""," said Craig Johnson, President of research partners in growth of client firm.
Lowe cut its benefit of exercise below forecasts for a range of $ 1.56 to $ 1.64 per action, its prospects prior $ 1.60 to $ 1.72. The forecast was also under average estimate of analysts of $1.70 per share, raises questions about demand for the rest of the year.
"Customers can feel better their employment status, but are uncomfortable because of fuel higher, clothing and fresh food, and geopolitical issues around the world," Director General Robert Niblock said.
Lower outlook implies that Lowe is less trust on sales in the second half, Analyst Credit Switzerland Gary Balter.
"There is little evidence that the underlying housing America market stabilizes, and improvements to the macro seek more to an event of 2012, if then," says Balter.
Niblock said that it still expects the second half to be better than the first, adding that the stabilization of housing prices would be key for the recovery of sales.
U.S. builders sentiment was unchanged at low levels in may as current seizures and reluctant to enter the market buyers kept credit crunch, the National Association of Home Builders said Monday.
Results of Lowe raise many questions, RBC Scot Ciccarelli capital markets analyst.
"Is this all weather conditions." Ciccarelli said. "Is - this impact begins to feel the rise in gas prices." Or probably, more worrying is the double dip recently that we began to see in the price of real estate?
BAD WEATHER HURTS
Lowe and arch-rival Home Depot Inc. are against strong numbers last year, when a first time home buyer tax credit and a "cash for appliances" program boosted demand. Home Depot is due to report its results quarterly Tuesday.
Sales in Lowe stores open at least a year fell to 3.3% in the first quarter ended April 29. JPMorgan analyst Christopher Horvers expected only a decrease of 2%.
Net income fell to 461 million, or 34 cents per share, of 489 million, or 34 cents per share, a year earlier. On average, analysts expected 36 cents per share, according to Thomson Reuters I/B/E/s
Sales fell 1.6% to 12.19 billion, missing analysts of $ 12.52 billion average estimate.
For the fiscal year ending February 3, the company sees amounting to about 4%, with same store sale apartment of 1% of sales.
No comments:
Post a Comment