Lowe’s net sales top Wall Street estimates in the first quarter By Investing.com
Investing.com — Lowe’s (NYSE:) reported first-quarter net sales that topped analysts’ estimates, as the DIY-retailer was boosted by growth in its online offerings and services for professionals.
Like other big-box chains, Lowe’s has been hit by customers choosing to postpone purchases on big-ticket items needed for home improvement projects during a time of elevated inflation and high interest rates.
However, the company said that this decline in discretionary spending was being partially offset by positive comparable sales in its digital store and Pro option, which caters to contractors.
Chief Executive Marvin Ellison added that Lowe’s took “market share in key categories” following the roll out of a new nation-wide loyalty program and expanded same-day delivery options.
Net sales at the North Carolina-based group came in at $21.36 billion in the three months ended on May 3, slipping by 4.4% compared to the year-ago period. However, the total was above Bloomberg consensus estimates of $21.13 billion.
Diluted earnings per share dropped to $3.06 from $3.77 a year ago. Operating margin dipped to 12.4%, slightly above Wall Street estimates of 12.3%.
Lowe’s also confirmed its full-year outlook, with Ellison noting that it is “pleased” with the start to its spring performance. Annual sales are projected to be between $84 billion to $85 billion, while diluted per-share income is seen at $12.00 to $12.30.
Shares in Lowe’s were higher in premarket U.S. trading on Tuesday.
