The first quarter brought Lowe’s Cos. a comparable store sales gain and growth in adjusted earnings and revenues that exceeded analyst expectations.
Net earnings were $1.63 billion, or $2.90 per diluted share, versus $1.64 billion, or $2.92 per diluted share, in the quarter a year before.
During the first quarter, Lowe’s noted that it recognized $96 million in pre-tax expenses associated with the acquisitions of Foundation Building Materials and Artisan Design Group. When adjusted, diluted earnings per share increased 3.8% to $3.03.
Lowe’s topped a Zacks Investment Research first quarter analyst consensus estimate on earnings, at $2.96, revenues, at $22.94 billion.
Comparable sales for the quarter increased 0.6% year over year, the company noted, driven by strong spring execution, as well as a 15.5% online sales advance, Lowe’s pointed out.
Total sales for the quarter were $23.08 billion versus $20.93 billion in the prior-year quarter. Operating income was $2.55 billion versus $2.49 billion, in the year-earlier period.
The company affirmed its previous fiscal year financial guidance. Lowe’s provided fiscal year guidance in the fourth quarter including a total sales increase of 7% to 9% with adjusted diluted earnings per share coming in at $12.25 to $12.75.
In a conference call, Marvin Ellison, Lowe’s chairman and CEO (pictured above), said, “Our results were driven by strong spring execution, along with continued strength in Pro, appliances, online and home services.”
Bill Boltz, Lowe’s executive vice president of merchandising, said, “We delivered positive comp sales across every merchandise division, including lawn and garden, seasonal and cleaning, tools and hardware, and power equipment.”
Ellison added, “We delivered our fourth consecutive quarter of positive comp sales. In spite of a challenging housing macro, we remain focused on advancing our Total Home strategy to provide the best experience for our customer.”
