Lowe’s reports disappointing sales
A day after naming a new CEO, Mooresville, N.C.-based Lowe’s reported strong earnings growth, and not-so-strong comp-store sales for the first quarter. The late spring, which had a negative impact on numerous earnings report already this year, dampened the chain’s outdoor categories.
Lowe’s reported net sales of $17.4 billion in the three months ended May 4, that’s 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, who announced his retirement earlier this year. “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.
On Tuesday, the company named Marvin Ellison as new CEO, effective July 2. Ellison is a former executive VP of U.S. stores for The Home Depot and is currently the CEO of J.C. Penney,
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.
In the tale of the tape comparison with its top retail rival, Lowe’s posted weaker comps than Home Depot, which reported results a week earlier.
Lowe’s reported net sales of $17.4 billion in the three months ended May 4, that’s 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, who announced his retirement earlier this year. “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.
On Tuesday, the company named Marvin Ellison as new CEO, effective July 2. Ellison is a former executive VP of U.S. stores for The Home Depot and is currently the CEO of J.C. Penney,
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.
In the tale of the tape comparison with its top retail rival, Lowe’s posted weaker comps than Home Depot, which reported results a week earlier.