A strong spring selling season after a harsh winter helped bolster sales for home-improvement supplies, but the rebound wasn’t strong enough to prevent Lowe’s from trimming its full-year financial targets.
The guidance cut was a surprise, and perhaps suggests rival Home Depot [fortune-stock symbol=”HD”] has captured more market share than expected. Lowe’s now sees full-year sales rising about 4.5%, with same-store sales up about 3.5%. Those targets still suggest healthy growth and indicate consumers are opening up their wallets for products for their homes, but the guidance is lower than what Lowe’s [fortune-stock symbol=”LOW”] expected in May.
“Our year-to-date sales performance, together with our previous assumptions for the second half of 2014, result in a modest reduction to our sales outlook for the year,” Lowe’s Chief Executive Robert Niblock said in a statement.
Home Depot and Lowe’s have reported stronger sales the past few years, bolstered by a recovering…
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