Lowe’s (NYSE: LOW) reported mixed earnings on Wednesday after cold and wet weather throughout April affected demand for seasonal goods. Shares tumbled 2% during premarket trading, upon the news.
The home improvement retailer reported earnings of USD3.51 per share, compared to the expected USD3.22 a share. Revenue amounted to USD23.66 Billion, lower than analysts anticipated USD23.76 Billion. Though comparable sales fell 3.8% in the quarter, pro customer sales shot up 20%.
“Our sales this quarter were in line with our expectations, excluding our outdoor seasonal categories that were impacted by unseasonably cold temperatures in April. Because 75% of our customer base is DIY, our Q1 sales were disproportionately impacted by the cooler spring temperatures. Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May,” commented Marvin R. Ellison, Lowe’s chairman, president, and CEO.
According to Ellison, customers are not shying away from the more expensive items. In fact, he said that Lowe’s shoppers are indeed trading up to a new refrigerator or purchasing higher-end lawn equipment.
“I’m not saying the macro environment does not matter. I’m saying that for home improvement we are not seeing any material impact,” the CEO said.