Lowe’s Earnings: DIY Sales Remain Soft, but Pro Strength and Cost-Control Cushion the Impact

Wide-moat Lowe’s fiscal first-quarter results were largely in line with our expectations, with $20.9 billion in revenue matching our estimate and an 11.9% operating margin slightly exceeding our projection by 10 basis points. While industrywide pressures, including sluggish home turnover, cautious consumer spending, and unfavorable weather, helped drag down comparable sales 1.7%, the figure came in a tad better than the 2% drop we had anticipated.