Home Lowe’s Beats Wall Street in Q1 Although Earnings, Revenues Slipped
May 21, 2024

Lowe’s Beats Wall Street in Q1 Although Earnings, Revenues Slipped

Posted In: Retail Articles

Despite a decline in do-it-yourself shopper sales, Lowe’s managed to beat Wall Street estimates for earnings and revenues in the first quarter.

Net earnings were $1.76 billion, or $3.06 per diluted share, versus $2.26 billion, or $3.77 per diluted share, in the year-prior quarter, the company reported.

In the period a year earlier, a gain from the sale of the company’s Canadian business added 10 cents to net earnings per diluted share, Lowe’s noted so, adjusted for the event, earnings per diluted share were $3.67, which compares to $3.06 in the 2024 period.

An analyst consensus estimate published by Yahoo Finance called for earnings per diluted share of $2.94 and revenues of $21.12 billion.

Comparable sales for the quarter declined 4.1% year over year as Lowe’s experienced a decrease in do-it-yourself big-ticket discretionary spending, partially offset by positive comparable sales in the Pro and online operations.

Net sales were $21.36 billion versus $22.35 billion in the year-previous quarter. Operating income was $2.65 billion versus $3.29 billion in the year-before period.

In a conference call, Marvin Ellison, Lowe’s chairman, president and CEO, said the company had boosted early spring business by launching initiatives at the season’s start. Smaller ticket lawn and garden sales had been strong in the DIY part of the business. He added that the company has generated greater customer satisfaction while maintaining its productivity strategy in the first quarter. 

“We are pleased with our start to spring, driven by strong execution and enhanced customer service,” he said, announcing financial results. “This quarter, we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories. We continue to gain momentum with our Total Home strategy, reflected in our growth in Pro and online.”

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