By Dhirendra Tripathi
Investing.com – Lowe’s (NYSE 🙂 shares traded 4.7% higher in trading on Wednesday as the retailer increased its previous sales forecast in 2021 by 6 billion to $ 92 billion.
Total second-quarter sales were $ 27.6 billion, compared to $ 27.3 billion in the second quarter of 2020, and comparable sales were down 1.6%.
Comparable sales for the home improvement business in the United States fell 2.2% during the second quarter as people returned to work and demand for the company’s DIY products eased. This was mitigated by higher sales of more expensive items.
Lowe’s said August is witnessing strong sales.
The drop was not as bad as analysts thought and this allowed the company to exceed estimates of both revenue and earnings per share. The $ 4.25 EPS was higher than the $ 3.99 forecast.
The company also raised its operating margin forecast to 12.2% compared to the previous 12%. It has pledged at least $ 2.8 billion to recover stock depreciation during the second half of the year.
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