Behind the numbers of Lowe’s Q1 report

One way to describe Lowe’s first quarter is net earnings growth of 34%, and positive comps in all 13 product categories.

Lowe’s CEO Robert Niblock described it another way: “Healthy macro fundamentals, favorable weather and our compelling offers drove demand.”

The Mooresville, North Carolina-based retail giant added color to its first quarter performance during its conference call with analysts. And echoing remarks of Home Depot’s Craig Menear, Niblock’s comment suggest it’s a good time to be in the home improvement business.

“The outlook for the home improvement industry remains positive,” Niblock said. “Shifting gains in the job market as well as disposal income growth is expected to outpace growth in the economy and should contribute to solid growth in consumer spending. And housing remains a bright spot.”

As Lowe’s comps increased 7.5% in the U.S., the company saw extra sales strength was seen in lumber and building materials, millwork, paint, lawn and garden.

According to COO Rick Damron, the company’s double-digit comps in LBM was driven by a surge in outdoor construction projects and surging demand from the pro customer. Lowe’s has 180 outside sales reps building business in this area, he said.

“We continue to strengthen our Pro business, driving comps well above the company average, by further advancing our product and service offering to better serve the Pro customer,” Damron said. “Beyond improvements in our tools offering, we've also strengthened our portfolio Pro-focused brands with the addition of GAF roofing, Owens Corning insulation, Lennox, and Masonite.”

Also in the first quarter, Lowe’s saw high single-digit comps in lawn and garden category and “particular strength” in garden hardware, lawn goods, soil and mulch, Damron said.

Paint also performed above the company average.

Lowe’s also continued to promote its omni-channel efforts as mission critical. “Our emphasis on providing better omni-channel experiences positioned us well, enabling us to connect with customers and provide the advice and assistance they count on when completing their home improvement projects, whether they choose to connect in the store, online, in their home, or at your contact centers,” Niblock said.