Lowe's stock rises after retailer tops earnings estimates and backs full-year guidance

By Ciara Linnane

A decline in big-ticket spending was partially offset by strength in Pro and online

Lowe's Cos. Inc.'s stock rose 2.2% premarket Tuesday, after the home-improvement retailer posted better-than-expected first-quarter earnings as a decline in big ticket spending was partially offset by positive performance in Pro and online.

Mooresville, N.C.-based Lowe's had net earnings of $1.8 billion, or $3.06 a share, for the quarter, down from $2.3 billion, or $3.77 a share, in the year-earlier period. Sales fell to $21.364 billion from $22.347 billion a year ago.

The FactSet consensus was for EPS of $2.95 and sales of $21.137 billion.

Same-store sales fell 4.1%, while FactSet was expecting a 5.5% decline.

Chief Executive Marvin Ellison said the company was pleased by its start to spring.

"This quarter we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories," CEO Marvin Ellison said in prepared remarks. "We continue to gain momentum with our Total Home strategy, reflected in our growth in Pro and online."

His comments contrasted with those from rival Home Depot Inc., which last week posted weaker-than-expected first-quarter sales as the spring selling season got off to a delayed start.

The company is still expecting full-year sales to range from $84 billion to $85 billion and for EPS to range from $12.00 to $12.30. It expects same-store sales to fall 2% to 3%.

The FactSet consensus is for EOPS of $12.18, sales of $84.4 billion for same-store sales to fall 2.5%.

The stock has gained 3% in the year to date, while the S&P 500 has gained 11%.

-Ciara Linnane

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05-21-24 0636ET

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