Although sales and earnings slipped in the first quarter, Lowe’s Cos. topped a Wall Street estimate and reaffirmed its guidance, saying it was in a good position to deal with tariffs and associated economic challenges.
The company posted net earnings of $1.64 billion, or $2.92 per diluted share, versus $1.76 billion, or $3.06 per diluted share, in the fiscal 2024 first quarter.
Lowe’s beat an analyst consensus estimate for the quarter published by Zacks Investment Research, which forecast earnings per diluted share of $2.88 and revenues of $20.92 billion.
Total sales for the quarter were $20.93 billion versus $21.36 billion in the prior-year quarter, Lowe’s maintained. Comparable sales slipped 1.7% in the quarter year over year as mid-single-digit pro and online comparable sales growth partially offset the impact of unfavorable weather. Operating income was $2.49 billion versus $2.65 billion in the year-earlier period.
Marvin Ellison, Lowe’s chairman, president and CEO, said in a conference call that the company is approaching tariffs by taking a portfolio approach to pricing, one that looks to minimize and compensate for the effects of duties. With effective price management tools to help the company navigate the tariff environment, he said, Lowe’s has great elasticity data across products and geographies, as well as vendor relationships it can lean on in determining pricing.
Brandon Sink, Lowe’s executive vice president and chief financial officer, said in the conference call that any tariff impact the company feels will come in the fiscal year’s second half and is already included in expectations. So, Lowe’s will focus on minimizing customer impact on pricing using the tools at its disposal.
In addition, he affirmed Lowe’s fiscal 2025 outlook, with sales ranging from $83.5 billion to $84.5 billion, comps flat to up 1%, and diluted earnings per share at between $12.15 to $12.40.
Ellison said in announcing the financial results, “Despite near-term uncertainty and housing market headwinds, our team’s unwavering focus on exceptional customer service has elevated satisfaction scores and earned Lowe’s the number one ranking in customer satisfaction among home improvement retailers by J.D. Power. Strategic investments in technology, inviting store environments and our dedicated associates continue to solidify our commitment to serving our customers and communities.”
