A Look into Lowe's Q1 2024 Performance: Highlights and Future Outlook
Lowe's (LOW) Q1 2024 Earnings Highlights
Shares of Lowe’s Companies Inc. (NYSE: LOW) were down over 1% on Wednesday. The stock has gained 9% over the past 12 months. The home improvement retailer reported its first quarter 2024 earnings results a day ago, which exceeded estimates despite declining from the year-ago period.
Better-than-expected results
- Lowe’s total sales for Q1 2024 decreased 4% year-over-year to $21.4 billion. Net income fell 18% to $1.8 billion, or $3.06 per share, compared to last year. Despite the year-over-year declines, both the top and bottom line numbers surpassed projections.
DIY weakness, strength in Pro
- In Q1, Lowe’s comparable sales declined 4.1%, mainly due to the continued weakness in DIY big ticket discretionary spending. DIY home improvement demand remains challenged by inflation, interest rate uncertainty, and customer preferences. However, Pro sales saw positive growth, driven by strategic investments and online sales.
Outlook: Lowe’s reaffirmed its full-year 2024 sales and EPS expectations, anticipating improvements in comp sales in the second half of the year. The company focuses on capturing market share in the Pro segment and overcoming DIY challenges through focused strategies.
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