Lowe’s Q1 sales disappoint after a chilly spring
Lowe’s Companies on Wednesday reported strong earnings growth, but its sales missed estimates as a delayed spring weighed on demand for outdoor products. Many other retailers, including Target, have cited un-spring-like weather as impacting their results as well.
The home improvement giant reported its results a day after it named a new CEO, Marvin R. Ellison, currently head of JC Penney, effective July 2. Ellison will suceed to the retiring Robert Niblock.
Lowe’s reported net sales of $17.4 billion in the three months ended May 4, up 3.0% from the same quarter last year. U.S. comp-store sales rose 0.5% and rose 0.6% in total – below analysts’ expectations of about 3% growth.
“We drove solid performance in indoor categories and continued to grow our sales to pro customers,” said Robert Niblock, Lowe’s CEO. “However, prolonged unfavorable weather across geographies led to a delayed spring selling season which impacted results in outdoor categories.”
Niblock described sales in the month of May as strong and encouraging. The company’s net income for the first quarter increased to $988 million, up from $602 million in the first quarter of year ago.
For the full year, Lowe’s expects total sales to increase about 5%, and comparable store sales are expected to increase about 3.5%.
“We continue to work diligently to improve conversion, better manage inventory and stabilize gross margin, while investing in the capabilities required to deliver simple and seamless customer experiences,” Niblock added.
The home improvement giant reported its results a day after it named a new CEO, Marvin R. Ellison, currently head of JC Penney, effective July 2. Ellison will suceed to the retiring Robert Niblock.
Lowe’s reported net sales of $17.4 billion in the three months ended May 4, up 3.0% from the same quarter last year. U.S. comp-store sales rose 0.5% and rose 0.6% in total – below analysts’ expectations of about 3% growth.
“We drove solid performance in indoor categories and continued to grow our sales to pro customers,” said Robert Niblock, Lowe’s CEO. “However, prolonged unfavorable weather across geographies led to a delayed spring selling season which impacted results in outdoor categories.”
Niblock described sales in the month of May as strong and encouraging. The company’s net income for the first quarter increased to $988 million, up from $602 million in the first quarter of year ago.
For the full year, Lowe’s expects total sales to increase about 5%, and comparable store sales are expected to increase about 3.5%.
“We continue to work diligently to improve conversion, better manage inventory and stabilize gross margin, while investing in the capabilities required to deliver simple and seamless customer experiences,” Niblock added.