Share of Lowe's Cos. (LOW) fell 1.1% in premarket trading Wednesday, after the home improvement retailer reported a fiscal first-quarter profit that rose above expectations but total and same-store sales that fell a bit shy, hurt by unseasonably cold temperatures in April. Net income for the quarter to April 29 rose to $2.33 billion, or $3.51 a share, from $2.32 billion, or $3.21 a share, in the year-ago period. The FactSet consensus for earnings per share was $3.22. Sales declined 3.1% to $23.66 billion, below the FactSet consensus of $23.77 billion. Same-store sales fell 4.0%, compared with the FactSet consensus of a 2.5% decline, while U.S. same-stores sales decreased 3.8% to beat expectations of down 4.2%. "Because 75% of our customer base is DIY [do-it-yourself], our Q1 sales were disproportionately impacted by the cooler spring temperatures," said Chief Executive Marvin Ellison. "Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May." The company affirmed its fiscal 2022 outlook for EPS of $13.10 to $13.60, for revenue of $97 billion to $99 billion and for share repurchases of about $12 billion. The stock has tumbled 24.9% year to date through Tuesday, while shares of rival Home Depot Inc. (HD) have dropped 27.5% and the S&P 500 has declined 14.2%.
(END) Dow Jones Newswires
May 18, 2022 06:18 ET (10:18 GMT)
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