Consumer Discretionary

Our 12-month target of $238, up $17, is 19.5x our FY 25 EPS view of $12.20 (down $0.06; FY 26’s down $0.28 to $13.48), a premium to historical averages. Our P/E reflects LOW’s productivity initiatives, improved customer service, and improving rate cut expectations. FQ1 (May) EPS of $3.06 (-16.6% Y/Y) beat by $0.10 on revenue of $21.4B (-4.4% Y/Y), 1% above consensus. Comp sales declined 4.1% on a 1% ticket contraction and a 3.1% transaction count decline. Notably, Pro and online sales achieved growth in Q1, with Pro backlogs flat Y/Y. Gross margin of 33.2% declined 50 bps due to investments, promotions, and a decline in credit revenue. SG&A advanced 140 bps to 18.8%, netting a 200-bp EBIT decline to 12.4%. Despite the top- and bottom-line beat, FY 25 guide remains unchanged. We see the roll-out of the loyalty program as necessary in meeting a stressed consumer. LOW assures its […]

Lowe’s sales were impacted by ongoing pressure on discretionary spending for big-ticket items, or ones costing $500 or more, that doesn’t appear to be going away anytime soon, Edward Jones analyst Brian Yarbrough says in a research note. The pullback will delay an eventual turnaround to positive sales growth, though long-term drivers are still intact, the analyst says. Lowe’s management says on a call with analysts that big-ticket categories will likely continue to face pressure among the retailer’s do-it-yourself customers. Shares are down 3.1% at $222.

The following is a summary of the Lowe’s Companies, Inc. (LOW) Q1 2024 Earnings Call Transcript: Financial Performance: Lowe’s Q1 reported sales of $21.4 billion, with comparable sales down by 4.1% from last year. The company delivered positive Q1 growth in Pro and online sales despite a challenging home improvement environment. Gross margin was at 33.2%, down by 49 basis points due to ongoing supply chain investments and spring promotions. Operating margin declined to 12.4%. Lowe’s generated $3.9 billion in free cash flow and made $382 million in capital expenditures. The company plans to use free cash flow in 2024 to repay a $450 million bond maturity with the remainder for share repurchases. Business Progress: Lowe’s achieved traction in its Total Home strategy, gaining Pro customers and improving online sales. It launched a successful SpringFest campaign and expanded delivery options through partnerships with DoorDash and Shipped. The company launched a

Lowe’s Companies (LOW) reported fiscal Q1 diluted earnings Tuesday of $3.06 per share, down from $3.77 a year earlier. Analysts polled by Capital IQ expected $2.96. Total sales for the quarter ended May 3 was $21.36 billion, down from $22.35 billion a year earlier. Analysts surveyed by Capital IQ expected $21.1 billion. The company said it expects full-year 2024 diluted earnings of $12.00 to $12.30. Analysts surveyed by Capital IQ expect $12.15. The company expects total sales for 2024 of $84 billion to $85 billion. Analysts polled by Capital IQ expect $84.41 billion.

Lowe’s (LOW) on Tuesday recorded better-than-expected fiscal first-quarter results, even as consumers cut back on big-budget spending on home improvement projects. The retailer’s earnings came in at $3.06 per share for the quarter ended May 3, down from $3.77 the year before, but topped the Capital IQ-polled consensus of $2.96. Sales slipped to $21.36 billion from $22.35 billion, but were ahead of the Street’s view for $21.1 billion. Shares rose nearly 3% in premarket activity. Comparable sales decreased 4.1%, compared with the 5.7% drop modeled by analysts, as positive pro and online same-store sales partially offset the decline in do-it-yourself big ticket discretionary spending, according to Lowe’s. “We are pleased with our start to spring, driven by strong execution and enhanced customer service,” Chief Executive Marvin Ellison said in a statement. “We think the company got off to a tough start, but our data indicated that sales trends accelerated towards

LOWE’S REPORTS FIRST QUARTER 2024 SALES AND EARNINGS RESULTS PR Newswire MOORESVILLE, N.C., May 21, 2024 — Comparable Sales Decreased 4.1%; Diluted EPS of $3.06 — — Affirms Full Year 2024 Outlook — MOORESVILLE, N.C., May 21, 2024 /PRNewswire/ — Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $1.8 billion and diluted earnings per share (EPS) of $3.06 for the quarter ended May 3, 2024, compared to diluted EPS of $3.77 in the first quarter of 2023, which included a gain associated with the 2022 sale of the Canadian retail business. Excluding this gain, first quarter 2023 adjusted diluted EPS(1) was $3.67. Total sales for the quarter were $21.4 billion, compared to $22.3 billion in the prior-year quarter. Comparable sales for the quarter decreased 4.1% as the decline in DIY big ticket discretionary spending was partially offset by positive comparable sales in Pro and online. “We are pleased

Lowe’s Companies (NYSE:LOW) reported quarterly earnings of $3.06 per share which beat the analyst consensus estimate of $2.94 by 4.08 percent. The company reported quarterly sales of $21.364 billion which beat the analyst consensus estimate of $21.123 billion by 1.14 percent.