Lowe’s earnings (LOW) Q1 2022

A customer pushes a cart towards a Lowe’s store in Concord, California, on Tuesday, February 23, 2021.

David Paul Morris | Bloomberg | beautiful pictures

Lowe’s Wednesday missed Wall Street’s sales expectations for its fiscal first quarter, as cooler spring weather weighed on supply demand for outdoor DIY projects.

Shares fell nearly 3% in pre-market trading.

The home improvement retailer reiterated its full-year outlook, saying it expects total revenue to be between $97 billion and $99 billion and same-store sales. from a 1% decrease to a 1% increase.

Here’s what the company reported for the April 29 quarter versus what Wall Street expected, based on a Refinitiv survey of analysts:

  • Earnings per share: $3.51 vs $3.22 expected
  • Revenue: $23.66 billion vs. $23.76 billion expected

Lowe’s results differ from those of competitors, Storehouse. On Tuesday, Home Depot surged Exceeded Wall Street’s expectations for quarterly earnings and revenue, driving its growth to home appreciation and a boom in projects for housing professionals.

Lowe’s, however, has a different mix to its business. Previously, it received about 75% to 80% of all sales from DIY customers compared to Home Depot, which received about half of its sales from them. That makes Lowe vulnerable to a change in demand, should a homeowner decide to forgo a painting or landscaping project.

“Our sales for this quarter were in line with our expectations, excluding the outdoor seasonal categories that were impacted by unusually cold April temperatures,” CEO Marvin Ellison said in a statement. earnings Wednesday morning. “Now that spring has finally arrived, we’re pleased with the improved sales trends we’re seeing in May.”

Lowe’s net income for the quarter increased slightly $2.33 billion, or $3.51 per share, from $2.32 billion, or $3.21 per share, a year earlier. The result was above the $3.22 level expected by analysts surveyed by Refinitiv.

Net sales fell to $23.66 billion from $24.42 billion last year and missed analysts’ expectations of $23.76 billion.

Sales at similar stores fell 4% year-over-year, a larger drop than the 2.5% drop analysts had predicted, according to StreetAccount.

As of late Tuesday, Lowe’s stock is down about 25% so far this year. Shares closed Tuesday at $194.03, bringing the company’s market value to $128.27 billion.

Correction: Lowe’s net sales missed analyst expectations. An earlier version misrepresented that fact.

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