Home renovation and improvement store Lowe’s has cut its full-year profit forecast after reporting disappointing first-quarter earnings, in part, due to cost increases.
“Because of ... the transition of our merchandising team, we literally had no visibility to those cost increases until the inventory that was increased in cost hit the P&L,” Ellison said on a post-earnings call with analysts.
"We are doubling our efforts, making sure we limit the number of surprises that will get us in the future,” he said.
Excluding one-time items, the company earned $1.22 per share in the three months ended May 3, missing analysts’ average estimate of $1.33, according to IBES data from Refinitiv. Overall, net sales rose 2.1% to $17.74 billion, beating expectations of $17.66 billion.