Lowe's (LOW) Q1 2024 earnings

A shopping cart stands outside a Lowe's store in Pacoima, California, November 21, 2023.

Justin Sullivan | Getty Images

Lowe's topped Wall Street's quarterly earnings reports and sales expectations on Tuesday, even as DIY shoppers bought fewer expensive items.

The home improvement store's results matched those of DIY store last week. Home Depot missed sales expectations, which it attributed to a tougher housing market and a delayed start to spring.

Lowe continues to stick to his annual forecast. The company expects total sales of between $84 billion and $85 billion, which would be down from $86.38 billion in fiscal 2023. It expects comparable sales to decline between 2% and 3% compared to the prior year, and expects earnings per share of approximately $12 to $12.30.

Here's what the company reported for its first fiscal quarter, compared to what Wall Street expected, based on a survey of analysts by LSEG:

  • Earnings per share: $3.06 versus $2.94 expected
  • Revenue: $21.36 billion vs. $21.12 billion expected

In the three-month period ended May 3, Lowe's net income fell to $1.76 billion, or $3.06 per share, from $2.26 billion, or $3.77 per share, a year earlier.

Revenue fell from $22.35 billion in the same period a year ago. It was the fifth consecutive quarter that Lowe's posted a year-over-year sales decline.

Compared to Home Depot, Lowe's gets less business from painters, contractors and other home professionals, who tend to experience steadier business even as do-it-yourself customers pull away. About half of Home Depot's sales come from professionals, compared with about 20% to 25% at Lowe's.

Still, Lowe's is trying to win business from more of these professionals. In the company's press release, CEO Marvin Ellison said professional gains and online sales growth have partially offset the decline in DIY spending.

Lowe's follows last year's quarter, when the company lowered its full-year guidance and posted a year-over-year sales decline. At the time, Ellison warned investors that the retailer expected “a near-term pullback in discretionary consumer spending.”

For each of the three quarters since then, Lowe's sales have also fallen from year-ago periods.

Shares of Lowe's closed Monday at $229.17, bringing the company's market value to $131.13 billion. As of Monday's close, the company's shares are up nearly 3% this year, behind the S&P 500's 11% gain.

This is the latest news. Check back later for updates.

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