by Home improvement retailer also reports $1.6 billion in net income compared with $1.8 billion the same period last year
MOORESVILLE, N.C. — Home improvement retailer Lowe’s reported a slight decline in overall net sales and same-store sales for its first quarter ended May 2.
Net sales totaled $20.9 billion, compared with $21.4 billion the same period last year. Same-store sales were down 1.7%, the company said, adding that declines in sales caused by unfavorable weather earlier in the quarter were partially offset by mid-single-digit Pro and online comparable sales growth.
It also reported $1.6 billion in net income, or $2.93 per share, compared with $1.8 billion, or $3.06 per share, the same period last year.
Gross profit totaled $7 billion, or 33.4% of sales, compared with $7.1 billion, or 33.2% of sales, last year. Operating income totaled $2.5 billion, or 11.9% of sales, compared with $2.7 billion, or 12.4% of sales, the same period last year.
“Despite near-term uncertainty and housing market headwinds, our team’s unwavering focus on exceptional customer service has elevated satisfaction scores and earned Lowe’s the #1 ranking in Customer Satisfaction among Home Improvement Retailers by J.D. Power,” said Marvin R. Ellison, Lowe’s chairman, president and CEO. “Strategic investments in technology, inviting store environments and our dedicated associates continue to solidify our commitment to serving our customers and communities. I’d like to extend my appreciation to our front-line associates for the dedication and hard work especially during the busy spring season.”
Furniture remains an important part of the company’s e-commerce business with sales of bedroom, dining room and living room furniture done through its website, www.lowes.com. It also sells bedding, home accents and decorative accessories, lighting, mirrors and area rugs, among other home furnishings.
Items such as lighting and area rugs can be purchased in-store and online, while other home furnishings are primarily available through the company website to be delivered to one’s home or picked up in the store.
As part of its full-year outlook, the company anticipates the following:
+ Total sales of $83.5 to $84.5 billion. It expects comparable-store sales to be flat to up +1% compared to the prior year.
+ Operating income as a percentage of sales (operating margin) from 12.3% to 12.4%.
+ Net interest expenses of approximately $1.3 billion.
+ Depreciation and amortization expense of approximately $1.8 billion.
+ An effective income tax rate of about 24.5%.
+ Diluted earnings per share between $12.15 and $12.40.
+ Capital expenditures of about $2.5 billion.
