Lowe’s reports earnings before the open on Tuesday, with lacklustre guidance overshadowing a Q1 report that beat analyst expectations.
For the first quarter, the North Carolina-based specialty retailer reported $3.67 in earnings per share on 22.3B in sales. Analysts had anticipated $3.45 in earnings per share on 21.68B in revenue. However, comparable sales decreased 4.3%, steeper than the 3.28% drop expected on the Street. Management blamed “lumber deflation, unfavourable weather and lower DIY discretionary sales” for the decline.
“We are pleased with the performance of our business despite record lumber deflation and unfavourable spring weather,” CEO Marvin R. Ellison said. “Although we delivered positive comparable sales in Pro and online for the first quarter, we are updating our full-year outlook to reflect softer-than-expected consumer demand for discretionary purchases.”