Lowe’s same-store sales miss estimates

Earnings


Lowe’s missed Wall Street forecasts for quarterly sales on Wednesday as a long winter hit demand for outdoor products, but the home improvement retailer maintained its annual financial targets on expectations that demand will recover.

Many U.S. retailers have said that a late start to the spring selling season has weighed on sales of lawn-mowers, patio furniture, and other seasonal products during the February-April period.

Still, Lowe’s Chief Executive Officer Robert Niblock said in a statement he was “encouraged by strong sales in the month of May.”

Shares of Lowe’s, the No. 2 U.S. home improvement chain, rose 3 percent to $88.30 in premarket trading, despite the company’s lower-than-expected comparable-store sales for the first quarter.

Sales at Lowe’s stores open at least a year rose 0.6 percent in the three months ended May 4, while analysts on average had expected a 3.06 percent increase, according to Thomson Reuters I/B/E/S.

“While certainly a touch disappointing, (Lowe’s report) wasn’t a big surprise to us. We believe most of the (comparable-store sales) pressure to be more transitory in nature than structural,” Gordon Haskett analyst Chuck Grom said.



Source link

Products You May Like

Articles You May Like

Start paying off your student loans as soon as possible, even before graduation
Snap shares plunge after analyst says users are less engaged
BJ’s Wholesale expects its IPO to price at $15 to $17 a share
The Qualcomm-NXP deal could signal what’s next for trade
How to make easy money on your work commute with Wrapify

Leave a Reply

Your email address will not be published. Required fields are marked *