Lowe’s confirmed its full-year sales forecast amid mixed sales trends, as robust demand from home professionals helped counterbalance slower spending by do-it-yourself customers. The home improvement retailer reported first-quarter results slightly below Wall Street’s revenue expectations but exceeded earnings estimates. CEO Marvin Ellison credited the company’s investments in stores, technology, and customer service with helping Lowe’s navigate near-term economic uncertainty and housing market challenges.
The home improvement sector has faced headwinds due to high interest rates and slower housing turnover, which have dampened consumer appetite for larger projects. Despite this, Lowe’s expects to break out of the sales slump with modest year-over-year gains. The company anticipates full-year total sales between $83.5 billion and $84.5 billion, with comparable sales forecasted to be flat or rise up to 1%, and earnings per share projected in the range of $12.15 to $12.40. Shares dipped less than 2% following the announcement.
For the fiscal first quarter ending May 2, Lowe’s reported net income of $1.64 billion, or $2.92 per share, down from $1.76 billion, or $3.06 per share, a year earlier. Revenue fell to $20.93 billion from $21.36 billion, and comparable sales declined 1.7%. CEO Ellison noted that unfavorable weather impacted sales, particularly early in the quarter, but growth in online sales and among home professionals helped offset this. Sales to professionals increased by mid-single digits, reflecting investments made since 2018, including expanding the merchandise assortment and launching a pro loyalty program.
As spring weather improved, Lowe’s saw sales gains in garden supplies, outdoor power equipment, grills, and patio furniture. The timing of Easter also affected monthly sales comparisons, with February down 5.4%, March up 1.7%, and April down 2.6%, partly because Lowe’s stores close on Easter Sunday. CFO Brandon Sink described Lowe’s customer base as generally financially stable homeowners, but noted many are postponing bigger purchases and projects, with no significant improvement expected this fiscal year.
Like Lowe’s, competitor Home Depot reaffirmed its full-year outlook, also posting comparable sales declines. Both retailers are focusing on increasing sales from home professionals. In April, Lowe’s announced the acquisition of Artisan Design Group for $1.3 billion, expanding its design and installation services for flooring, cabinets, and countertops targeting homebuilders and property managers.
Tariffs have added cost pressures for retailers importing goods globally, with different strategies emerging among competitors. Walmart expects to raise prices to offset tariffs, while Home Depot plans to maintain pricing levels. Lowe’s CEO Ellison said the company is working closely with suppliers to minimize tariff impacts and aims to remain price competitive. He emphasized Lowe’s commitment to protecting market share.
Ellison noted that approximately 60% of Lowe’s purchases are U.S.-sourced, with only about 20% coming from China, following years of supplier collaboration on diversifying sourcing. The company’s global sourcing team is actively pursuing new opportunities both in the U.S. and internationally. Products currently sourced from China include artificial Christmas trees, ceiling fans, small appliances, and tools. Lowe’s is working to shift production of these items to other countries to reduce reliance on any single market.
Despite ongoing challenges in the home improvement market, Lowe’s continues to leverage its investments and strategic initiatives to navigate uncertainty, aiming to deliver stable growth while maintaining competitive pricing and expanding its professional customer base.
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