A customer pushes a shopping cart to the entrance of a Lowe’s store in Concord, California on Tuesday, February 23, 2021.
David Paul Morris | Bloomberg | Getty Images
Lowe’s missed Wall Street’s first-quarter sales expectations on Wednesday as cooler spring weather hit demand for supplies for outdoor do-it-yourself projects.
Shares lost about 1% in premarket trading.
The company reiterated its full-year outlook, saying it expects total sales to be between $97 billion and $99 billion and same-store sales to range from a 1% decline to a 1% increase.
Here’s what the company reported for the quarter ended April 29, compared to Wall Street expectations based on a poll of analysts by Refinitiv:
- Earnings per share: $3.51 vs. $3.22 expected
- Revenue: $23.66 billion versus $23.76 billion expected
Lowe’s results differed from those of its competitor Home Depot. On Tuesday, Home Depot beat Wall Street expectations for quarterly earnings and sales, attributing its growth to home appreciation and a boom in home improvement projects.
However, Lowe’s has a different mix in its store. It’s historically got about 75% to 80% of its total sales from home improvement customers, compared to Home Depot, which gets about half of its sales from them. That makes Lowe’s more vulnerable to shifts in demand if homeowners decide to skip a painting or landscaping project.
“Our sales for the quarter were in line with our expectations, with the exception of our seasonal outdoor categories, which were impacted by unusually cold temperatures in April,” CEO Marvin Ellison said in Wednesday morning’s earnings release. “Now that spring has finally arrived, we’re excited about the improved sales trends we’re seeing in May.”
Lowe’s net income for the quarter rose slightly $2.33 billion, or $3.51 per share, up from $2.32 billion, or $3.21 per share, a year ago. The results came in above the $3.22 expected by analysts polled by Refinitiv.
Net sales fell to $23.66 billion from $24.42 billion a year earlier, beating analysts’ expectations of $23.76 billion.
According to StreetAccount, same-store sales fell 4% year over year, a bigger drop than the 2.5% drop analysts had been expecting.
As of Tuesday’s close, shares of Lowe’s are down about 25% so far this year. Shares closed Tuesday at $194.03, bringing the company’s market value to $128.27 billion.
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https://www.cnbc.com/2022/05/18/lowes-low-earnings-q1-2022.html Lowe’s (LOW) profit Q1 2022