Lowe’s (LOW) earnings Q1 2022
On Tuesday, February 23, 2021, a customer pushes his shopping cart toward the Lowe’s Concord store.
David Paul Morris | Bloomberg | Getty Images
Lowe’sWall Street sales forecasts for the quarter ended Wednesday lower than expected. This was because of the cooler spring weather that hurt outdoor projects and decreased demand.
In premarket trading, shares were flat.
According to the company, its outlook for full year was unchanged. It expects total sales between $97 billion to $99 billion. Same-store sales will range from a decrease of 1% to an increasing of 1%.
This is what the company reported in the fourth quarter that ended on April 29. It’s compared to the expectations of Wall Street, as based upon a Refinitiv survey of analysts:
- Earnings per share: $3.51 vs. $3.22 expected
- Revenues: $23.66 Billion compared to $23.76 Billion expected
Lowe’s results differed from the competitors. Home Depot. On Tuesday, Home Depot surged beyond Wall Street’s expectations for quarterly earningsand revenues, blaming its growth on home appreciation and an increase in projects for home professional.
Lowe’s however has a unique business model. Lowe’s has traditionally gotten 75% to 88% of its total sales through DIY customers, compared to Home Depot which receives about half its sales. Lowe’s is more susceptible to changes in demand if homeowners choose to not complete a landscaping or painting project.
Marvin Ellison, CEO of GE Capital said Wednesday that sales for the third quarter exceeded expectations. He did not include outdoor seasonal categories affected by April’s unseasonably low temperatures. We are happy with our improved May sales trend now that spring is finally here.
The quarter’s net income at Lowe increased by a slight amount The $2.33 trillion, or $3.51 per Share, was up from the $2.32 billion (or $3.21 each share) a year prior. Refinitiv analysts expected the results to be higher than $3.22 per share.
After $24.42billion last year, net sales declined to $23.66billion. Analysts had expected $23.76billion.
Year over year, same-store sales fell 4%
Lowe’s shares are currently down 25% as of Tuesday’s closing. The company’s market capitalization has risen to $128.27 million, with shares closing Tuesday at $194.03.
The story is still in development. Keep checking back for more updates.