A closer look at Lowe's Q1 growth
In a quarter that saw growth in average ticket and transactions, as well as comp-store sales of 5.2%, Lowe's reported above average comps in appliances, outdoor power equipment and seasonal living.
Speaking to analysts on the Mooresville, North Carolina-based retailer's first-quarter performance, Lowe's Chief Customer Officer Mike Jones said brands such as Husqvarna, Troy-Bilt, Whirlpool and Sherwin-Williams played a role in the company's growth.
Earlier this week, Lowe's reported first quarter sales of $14.1 billion, up 5.4%.
Jones also reported a boost from HDTV by Sherwin Williams paint, representing the first time in 40 years that the Sherwin Williams brand has been available in stores other than Sherwin-Williams. The brand was introduced in December and on the shelves of all stores in April.
Walk-behind and riding mowers pushed sales up, particularly in the South and West, he said. A home channel exclusive on Husqvarna all-wheel-drive mowers and the recently launched Troy-Bilt FLEX product performed well in the aisles, he said. The OPE category scored double-digit comps.
In outdoor living, the West Coast ports labor unrest added complexity to the retailer's first quarter. Still, Jones said in-stock levels remained high. And the category that was most exposed to disruption and with the highest concentration of imports -- seasonal living -- exceeded expectations.
Merchandising techniques were credited, especially the "showroom feel" of the outdoor living area. "To help customers envision and create their outdoor space we display patio sets with coordinating rugs, umbrellas and accessories like pillows and planters along with grills and other outdoor products just as you would expect to see in your own backyard," Jones said.
Appliances saw double-digit comps for the second straight quarter. Lowe's stable of brands includes Whirlpool, KitchenAid, Bosch, Samsung, LG, Electrolux, Frigidaire and GE. Lowe's added to that mix with the launch of Frigidaire Pro, a home channel exclusive, Jones said.