(Reuters) – Dwelling enchancment chain Lowe’s Cos Inc raised its full-year gross sales forecast on Wednesday, boosted by increased demand from builders and contractors, in addition to a robust U.S. housing market.
The corporate’s shares rose about 3% in premarket buying and selling.
Excessive-spending skilled contractors have been splurging on instruments and constructing supplies at house enchancment retailers over the previous few months on the again of the frenzy to finish a backlog of house restore and improve jobs that had been delay throughout the pandemic.
Rising house costs in the US has additionally given individuals confidence to put money into improve jobs for his or her properties.
Lowe’s mentioned it expects fiscal yr 2021 whole gross sales of about $95 billion, in comparison with a earlier forecast of about $92 billion.
Similar-store gross sales rose 2.2% within the third quarter ended Oct. 29, in comparison with analysts’ estimates of a 2.9% drop, in response to IBES information from Refinitiv. Compared, bigger rival Dwelling Depot Inc reported a 6.1% rise in same-store gross sales on Tuesday.
(This story corrects analyst estimate to 2.9% drop, not 1.4%, in paragraph 6)
(Reporting by Uday Sampath in Bengaluru; Enhancing by Maju Samuel)