Home improvement retailer Lowe’s (LOW) first-quarter financial results have beaten Wall Street forecasts despite consumers pulling back their spending on do-it-yourself projects.
The company reported earnings per share (EPS) of $3.06 U.S. compared to $2.94 U.S. that was expected among analysts.
Revenue for the January through March quarter came in at $21.36 billion U.S. versus $21.12 billion U.S. that had been forecast on Wall Street.
Sales were down 4% from a year earlier, marking the fifth consecutive quarter that Lowe’s has posted a year-over-year sales decline.
In its earnings news release, Lowe’s said that sales to professional contractors and online sales growth helped to partially offset a decline in consumer spending.
The company added that it expects a continued pullback in discretionary consumer spending over the near-term.
Despite consumers pulling back, Lowe’s maintained its full-year guidance.
The company said that it still expects sales this year of $84 billion U.S. to $85 billion U.S., which would be a decrease from $86.38 billion U.S. in 2023.
Lowe’s also continues to forecast earnings per share this year of $12 U.S. to $12.30 U.S.
The stock of Lowe’s is up 4% on news of its earnings beat. Prior to today (May 21), the company’s share price had increased 13% in past 12 months to trade at $229.17 U.S. a share.
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