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Lowe’s sales decline amid low demand in cooler weather
By Shubhangi Mathur - May 18, 2022, 06:19 PM ET
Last Updated - Jul 18, 2023, 05:11 PM EDT
• Net sales of the company fell to $23.66 billion from $24.42 billion last year
Lowe’s Cos Inc (NYSE: LOW) posted lower sales in the first quarter as consumers steered away from spending on outdoor home projects including grills and patio furniture in a cooler weather.
The home improvement retailer sales were hurt due to the “unseasonably cold temperatures” in April but with the arrival of spring, sales is improving in May, said Lowe’s Chief Executive.
"Our sales this quarter were in line with our expectations, excluding our outdoor seasonal categories that were impacted by unseasonably cold temperatures in April. Because 75% of our customer base is DIY, our Q1 sales were disproportionately impacted by the cooler spring temperatures,” said CEO Marvin R. Ellison.
“Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May," he added.
Net sales of the company fell to $23.66 billion from $24.42 billion last year and missed analysts’ expectations of $23.76 billion.
Lowe’s same-store sales declined 4% year over year, compared to the 2.5% decline expected by analysts, according to StreetAccount.
On the other hand, rival Home Depot Inc (NYSE: HD) posted strong quarterly results on Tuesday and also raised its full-year outlook.
Lowe’s sales was largely impacted by shift in demand as 75% of its sales is depended on do-it-yourself (DIY) customers compared to 50% dependency of Home Depot.
Lowe’s net income increased slightly to $2.33 billion in the quarter from $2.32 billion a year earlier.
Picture Credits: Getty Images
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