Lowe's forecasts lower 2020 profit than Wall Street expected

Sales growth was driven by brick-and-mortar stores

Lowe’s predicted lower profit this year than Wall Street projected after disappointing same-store sales at the end of 2019.

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Earnings at the Mooresville, North Carolina-based hardware retail chain will be as much as $6.65 a share, compared with the $6.67 that analysts surveyed by Refinitv had estimated.

Same-store sales rose 2.5 percent in the three months through January, missing the 3.6 percent that analysts expected. Companywide, Lowe's earned $509 million, or 66 cents a share, as revenue rose 2.4 percent to $16.03 billion. Adjusted earnings were 94 cents a share, exceeding the 91 cents that was anticipated.

TickerSecurityLastChangeChange %
LOWLOWE'S COMPANIES INC.152.78+1.59+1.05%

“We delivered profitability that exceeded our expectations given strong expense management, improving gross margin and enhanced process execution,” CEO Marvin Ellison said in a statement. “Our sales growth was driven almost entirely by our U.S. brick and mortar stores, supported by our investments in technology, store environment and the Pro business.”

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Lowe's shares were down 1 percent year-to-date through Tuesday, outperforming the S&P 500's 3.2 percent decline.