S&P 500 component Lowe's reported better-than-expected first-quarter earnings and revenue early Tuesday as same-store sales decreased for the six consecutive quarter. Lowe's Q1 financials follow results from rival Home Depot last week. LOW stock fell Tuesday.
Lowe's Q1 EPS dropped 17% to $3.06 per share with revenue falling more than 4% to $21.36 billion. Same-store sales decreased 4.1%, marking the sixth consecutive quarter with same-store sales declining, dating back to Q3 2022 — just like Home Depot.
Analysts predicted Lowe's first-quarter earnings of $2.95 per share and sales totaling $21.14 billion, according to FactSet. The consensus among analysts also has same-store sales decreasing 5.5%.
Lowe's reported that its same-store sales decrease was due to a drop in "do-it-yourself" (DIY) spending. However, the home improvement retailer added this was "partially offset by positive comparable sales" in its professional and online segments.
"This quarter we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories," Chief Executive Marvin Ellison said Tuesday in the earnings release.
Lowe's also reaffirmed its full-year outlook on Tuesday. At the end of February, Lowe's management guided full-year EPS of $12-$12.30 with revenue of $84-$85 billion. Lowe's also continues to expect same-store sales to decline 2%-3% in 2024.
Lowe's stock dropped 1.9% to 224.92 during market trade on Tuesday. The S&P 500 stock edged down 0.8% to 229.17 Monday. Last week, LOW stock fell 1.7%.
Last week, Lowe's rival Home Depot, also an S&P 500 component, announced better-than expected first quarter earnings and reaffirmed 2024 guidance.
Home Depot's Q1 earnings fell 5% to $3.63 per share while sales totaled $36.42 billion, down more than 2% compared to Q1 2023. The big box retailer also continues to predict 2024 revenue and EPS to grow around 1% while same-store sales for 2024 are forecast to decrease 1%.
S&P 500: Lowe's Stock
LOW shares are in a consolidation with a 262.49 buy point, but is trading modestly below its 50-day line, according to MarketSurge analysis.
Lowe's stock approached all-time highs on March 22, hitting 262.49. Since then, the S&P 500 stock has dropped 12%, with a recent low of 224.68 on April 25. For 2024, Lowe's stock is up around 4%.
Meanwhile, Home Depot stock hit a 2024 high of 396.87 on March 21 and has also fallen since then, finding support at its 200-day moving average. HD stock is below its 50-day line.
Lowe's stock has a 43 Composite Rating out of a best-possible 99. The S&P 500 stock also has a 50 Relative Strength Rating and a 76 EPS Rating.
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