StockWorld News

Lowe’s Q1 results: same-store sales decline is not ‘that big of a deal’

Lowe’s Q1 results: same-store sales decline is not ‘that big of a deal’

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >

By:

Wajeeh Khan

on
May 18, 2022

Lowe’s reports lower-than-expected sales for its fiscal first quarter.

Oppenheimer analyst reacts to earnings report on CNBC Squawk Box.

Shares of the home improvement retailer are down 4.0% this morning.

Shares of Lowe’s Companies Inc (NYSE: LOW) are down 4.0% on Wednesday after the home improvement retailer blamed unseasonably cold temperature for lower-than-expected sales in fiscal Q1.

Key takeaways from Lowe’s Q1 results

Net income came in at $2.33 billion that translates to $3.51 per share.In Q1 last year, net income was $2.32 billion or $3.21 per share.Sales slid 3.1% YoY to $23.66 billion, as per the earnings press release.FactSet consensus was for $3.22 of EPS on $23.77 billion in sales.Same-store sales were down 4.0% versus a 2.5% decline expected.

A 3.8% decline in U.S. comparable sales, however, was better than a 4.2% decline that experts had forecast.


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Future outlook

For fiscal 2022, Lowe’s reiterated its guidance for EPS in the range of $13.10 to $13.60 on up to $99 billion in revenue. The Mooresville-headquartered company plans on buying back $12 billion worth of its stock.

Oppenheimer analyst reacts to the earnings report

According to Oppenheimer’s Brian Nagel, a 4.0% decline in Lowe’s comparable sales is not “that big of a deal”, even after peer Home Depot reported same-store sales growth yesterday. On CNBC’s “Squawk Box”, he said:

Lowe’s is more focused on the outdoor DIY category. Home Depot yesterday said there’s been a slower start to Spring. But as the spring weather has finally come, these seasonal products have picked up. I think Lowe’s will say the same.

He sees the stock down more than 25% from its year-to-date high as “quite cheap”.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,
eToro

10/10

68% of retail CFD accounts lose money

Visit site

Industries


North America


Retail


Stocks & Shares


USA


World