2023-05-23 06:16:43 ET
Lowe’s Companies ( NYSE: LOW ) shares slid in premarket actions as lackluster guidance overshadowed a Q1 report that pushed past analyst expectations.
For the first quarter, the North Carolina-based specialty retailer reported $3.67 in earnings per share on $22.3B in sales. Analysts had anticipated $3.45 in earnings per share on $21.68B in revenue. However, comparable sales decreased 4.3%, steeper than the 3.28% drop expected on the Street. Management blamed “lumber deflation, unfavorable weather and lower DIY discretionary sales” for the decline.
“We are pleased with the performance of our business despite record lumber deflation and unfavorable spring weather,” CEO Marvin R. Ellison said. “Although we delivered positive comparable sales in Pro and online for the first quarter, we are updating our full-year outlook to reflect softer-than-expected consumer demand for discretionary purchases.”
For the full-year, the company tempered total sales forecasts to a range of $87B to $89B from a prior $88B to $90B. Analysts had projected $88.57B in revenue for the full year. Comparable sales are expected to be down 2% to 4%, also revised downward from a previous guide of flat to down 2%.
An updated projection for adjusted diluted earnings per share of $13.20 to $13.60 reflected a cut from $13.60 to $14.00 in prior guidance and now below the $13.64 consensus.
Shares of Lowe's ( LOW ) slid 1.51% in premarket action after mirroring Home Depot's ( HD ) comparable sales disappointment and soft guidance .
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Lowe’s stock slips on lowered full-year forecasts