Lowe’s (NYSE:LOW) on Wednesday missed Wall Street’s sales expectations for its fiscal first quarter, as cooler spring weather hurt demand for supplies for outdoor do-it-yourself projects.
Lowe’s reiterated its full-year outlook, saying it expects total sales to range between $97 billion and $99 billion and same-store sales to range from a decline of 1% to an increase of 1%.
Earnings per share proved $3.51 vs. $3.22 expected by analysts. Revenue was $23.66 billion vs. $23.76 billion expected
Lowe’s results diverged from those of its competitor, Home Depot (NYSE:HD) . On Tuesday, Home Depot surged beyond Wall Street’s expectations for quarterly earnings and revenue, chalking up its growth to home appreciation and a boom in projects for housing professionals.
Lowe’s, however, has a different mix to its business. It has historically gotten about 75% to 80% of its total sales from DIY customers compared with Home Depot, which gets about half of its sales from them. That makes Lowe’s more vulnerable to shifts in demand, if homeowners decide to skip a painting or landscaping project.
Lowe’s net income for the quarter increased slightly to $2.33 billion, or $3.51 per share, from $2.32 billion or $3.21 per share, a year earlier. The results were above the $3.22 expected by analysts.
Net sales fell to $23.66 billion from $24.42 billion last year and missed analysts’ expectations of $23.76 billion.
LOW shares sagged $5.42, or 2.8%, to $188.62.
