Why Are Lowes Shares Falling Tuesday?
Portfolio Pulse from Vaishali Prayag
Shares of Lowe’s Companies, Inc. (NYSE:LOW) are trading lower due to a broader sell-off in building-related stocks, triggered by Pool Corporation’s (NASDAQ:POOL) revised earnings guidance for 2024. Pool Corp expects a 15% to 20% drop in new pool construction and remodeling activity, impacting Lowe’s as a major supplier of home improvement materials.
June 25, 2024 | 7:44 pm
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Lowe’s shares are down 4.76% due to Pool Corp’s revised earnings guidance for 2024, which forecasts a significant drop in new pool construction and remodeling activity. This has raised concerns about potential declines in sales for related home improvement products.
Lowe’s is a major supplier of home improvement materials, and Pool Corp’s forecast of reduced discretionary spending on big-ticket items like swimming pools directly impacts Lowe’s sales outlook.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Pool Corporation has revised its 2024 earnings guidance, expecting a 15% to 20% drop in new pool construction and remodeling activity due to a challenging macroeconomic environment. This has led to a broader sell-off in building-related stocks.
As the world’s largest wholesale distributor of swimming pool products, Pool Corp’s significant earnings revision indicates a challenging macroeconomic environment, leading to a broader sell-off in related stocks.
CONFIDENCE 95
IMPORTANCE 80
RELEVANCE 100