On Wednesday, Lowe’s Cos Inc or LOW.N, which ranked second as a home improvement chain based in the US, had its fiscal-year sales and profit forecasts raised as the encouragement of developing job market touches homeowners for them to increase their renovation expenses.
This company, having shares increase of over five percent, also released reports indicating quarterly results that are higher-than-expected.
Also, sales are experiencing recovery after this year’s severe winter that hit the outdoor product demand like tiling and roofing materials.
Based on statements from Robert Niblock, the chief executive of the company, today, more than any other moment ever since the year 2006, owners of homes are eyeing on making home investments. Also, while the majority of the projects appear small-ticket, they are witnessing an increase in projects that are big-ticket.
On Tuesday, the rival of the company, Home Depot, reported quarterly sales that are a bit higher-than-expected. However, earnings entered just below the estimates of Wall Street.
According to Thomson Reuters, the forecast of profit for the entire year released by Lowe’s was raised from $2.63 to $2.68 for each share. The average set by analysts was $2.63.
The company mentioned, too, that it had sales growth expectations of 4.5% to 5% for the year, which will end on the 30th day of January.