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Lowe¡¯s reports 4% decreased in Q1 sales
[May 28, 2024]

Home improvement retailer Lowe¡¯s Cos. reported a 4% decrease in sales and a 22.3% drop in earnings for the first quarter ended May 3.

Its total sales for the quarter were $21.4 billion, compared to $22.3 billion in the same period last year. The company noted that comparable-store sales for the quarter decreased 4.1% because of a decline in DIY big-ticket discretionary business. This was partially offset by an increase in comparable sales in its online and its Pro contract and trade segments.

Total net income was $1.75 billion, or $3.06 per share, compared to $2.26 billion, or $3.77 per share, the same period last year.

By the end of the quarter, the company operated 1,746 stores totaling nearly 195 million square feet of retail selling space.

¡°We are pleased with our start to spring, driven by strong execution and enhanced customer service,¡± said Marvin R. Ellison, chairman, president and chief executive officer. ¡°This quarter we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories. We continue to gain momentum with our Total Home strategy, reflected in our growth in Pro and online. I would like to thank our frontline associates for their hard work, commitment to customers and disciplined focus on productivity.¡±

Other highlights of the report were as follows:

--- The company reported operating income of $2.65 billion, or 12.4% of sales, compared with $3.3 billion, or 14.7% of sales, the same period last year.

--- Its gross margin was $7.1 billion, or 33.2% of sales, compared with $7.5 billion, or 33.7% of sales, last year.

--- At the end of the quarter, it reported cash and cash equivalents of $3.2 billion, compared with $2.95 billion the same period last year.

While home improvement, lawn and garden and other segments such as counters and cabinetry represent a majority of its business, the retailer also sells furniture on its website, www.lowes.com

Core categories include bedroom and dining furniture, living room furniture such as upholstery and occasional, plus office furniture and mattresses. In many cases, consumers can order these products online and pick them up at the store or have them delivered to their home. Delivery is typically free of charge to consumers that live in the same city or town where the store is located.

Source: corporate.lowes.com