Lowe’s Companies reported lower-than-expected first quarter earnings Wednesday, even as it beat estimates on revenues. The home improvement retail giant also lowered its projection on full-year earnings.
Earnings for the three months ending in April came in at $1.22 per share, weaker than the Street consensus expectations of $1.33 per share. They were, however, +2.5% higher from the year-ago period.
The company's total revenue increased +2.2% year-over-year to $17.7 billion in the quarter, edging past analysts' estimates of $17.48 billion. Same stores sales climbed +3.5% from last year, also beating consensus expectations of a +3.2% gain.
Looking ahead, Lowe’s predicts that adjusted earnings for the current fiscal year, (ending early 2020), would sit between $5.45 and $5.65, down from a prior forecast range of $6.00 to $6.10.
But it reaffirmed forecasts on revenue growth at +2% and comparable sales growth at 3%.
While mentioning strength in consumer spending as reflected in sales growth, CEO Marvin Ellison also admitted to cost pressures and added that the company is taking steps, such as improving retail pricing strategies, to mitigate the challenge.