Lowe's (LOW) stock has been on the rise since the company released its fourth quarter report, which beat expectations with sales of $18.6 billion versus expected sales of $18.45 billion. However, the company said comparable sales for the quarter were down 6.2% year over year due to a decline in consumer home improvement projects.
DA Davidson Managing Director and Senior Research Analyst Michael Baker joins Yahoo Finance to discuss the company's revenue and declining interest in home improvement projects.
Baker elaborates on Lowe's strong performance despite the headwinds: “This year hasn't been a bad quarter at all. As it relates to next year's outlook, the 2024 numbers are lower than 2023. We knew it was going to be. It was a little softer than we expected, but not too bad. We think we're doing well internally against the backdrop of a tough macro environment. For example, sales were very strong. “Sales are down. So they're controlling as much as they can, and gross margins have increased slightly.” That's all good against a tough environment. I think that's why the stock price went down a little bit, but it's rebounded now. We have pretty good control over what the company can do. I can see you are there.”
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Editor's note: This article was written by Nicholas Jacobino
