Lowe's (LOW) said Wednesday that it expects to return to sales growth in its next fiscal year, as the home improvement retailer has contended with lo✨wer discretionary spending and a slow housing market in fiscal 2024.

At its annual investor day Wednesday, the retailer outlined its financial projections for fiscal 2025, along with new products and features it hopes will drive sales. The retailer said a revamped rewards program, expanded online product selection, and more should improve sales with both do-it-yourself (DIY) customers and professional contractors, a market Lowe's is looking to grow.

Lowe's affirmed its guidance for fiscal 2024, expecting $83 billion to $83.5 billion in revenue, down from $86.38 billion in fiscal 2023, with a 3% to 3.5% decline in comparable store sales from last year.

Lowe's Sees Sales Growth Likely in 2025, Beyond

As Lowe's looked ahead to fiscal 2025, it outlined a range of outcomes because of the "uncertainty" around when the housing market will recover, as it will depend on range of factors like interest and 澳洲幸运5官方开奖结果体彩网:mortgage rates and new home construction.

In a "moderate" home improvement market, Lowe's expects sales to rise year-over-year to $84 billion. However, a number of factors like shifting mortgage rates could positively or negatively impact sales, with projections ranging from $82 billion to $87 billion.

Over the next three to five years, the retailer said lower 澳洲幸运5官方开奖结果体彩网:mortgage rates, along with improving consumer confidence and discretionary income, should boost sales. Lowe's also said other long-term trends like enduring remote work and more Millennials buying homes should also drive the🅠 housing market and sales for Lowe's.

Lowe's and home improvement rival Home Depot (HD) 澳洲幸运5官方开奖结果体彩网:have said over 澳洲幸运5官方开奖结果体彩网:the last year that consumers have pulled back on discretionary spending on things like DIY projects and appliances after a surge in those categories during the COVID lockdowns. The retailers 澳洲幸运5官方开奖结果体彩网:have each worked to 澳洲幸运5官方开奖结果体彩网:expand their market share among contractors to compensate for the slowdown in spendin😼g from the 🐻average shopper.

Lowe's and Home Depot 澳洲幸运5官方开奖结果体彩网:beat estimates in their 澳洲幸运5官方开奖结果体彩网:most recent quarters, though executives noted the "continued softness" in "big ticket" spending and "macro♈economic uncertainty."

Lowe's shares were little changed Wednesday afternoon, and have gained north of 20% on the year.