Sales of Lowe’s outdoor seasonal categories were hurt by cool spring weather.
Lowe’s Cos. reported first-quarter profit that easily topped expectations, but its sales fell short, hurt by unseasonably cold temperatures in April.
“Because 75% of our customer base is DIY, our Q1 sales were disproportionately impacted by the cooler spring temperatures,” stated Marvin R. Ellison, Lowe's chairman, president and CEO. “Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May.”
Net income rose to $2.33 billion, or $3.51 a share, for the quarter ended April 29, from $2.32 billion, or $3.21 a share, in the year-ago period. Analysts had expected earnings per share of $3.22.
Sales declined 3.1% to $23.66 billion, below estimates of $23.77 billion. Same-store sales fell 4.0%. U.S. same-stores sales decreased 3.8% to beat expectations of down 4.2%.
“Despite some increased uncertainty in the macro environment, we remain confident in the outlook for the home improvement market and our ability to deliver operating margin expansion in 2022,” Ellison said.
The retailer reiterated its fiscal 2022 outlook. It expects earnings per share of $13.10 to $13.60, revenue of $97 billion to $99 billion same-store sales to range from a decline of 1% to an increase of 1%.
As of April 29, 2022, Lowe's operated 1,971 home improvement and hardware stores in the United States and Canada, and serviced approximately 230 dealer-owned stores.