Lowe's Q1 FY2024 Earnings: Net Income Down, Beats Expectations Amidst Decrease in DIY Spending and Economic Uncertainty

United States of America
Lowe's CEO, Marvin Ellison, stated that the home improvement customer is still expressing concerns about higher cost of living and the state of the overall economy. He also mentioned that a mix of factors kept customers from spending more freely, including continued pressure from inflation and uncertainty around when the Federal Reserve may cut interest rates.
Lowe's reported a decline in comparable sales (sales at stores open for at least one year) of 4.1%. This was an improvement compared to the previous quarter's decline of 4.3%. The company anticipates total sales for FY2024 to be between $84 billion and $85 billion, with earnings per share estimated around $12 to $12.30.
. Lowe's reported first quarter earnings for FY2024 on May 21, 2024. The company's net income fell to $1.76 billion or $3.06 per share from $2.26 billion or $3.77 per share in the same quarter last year (Q1 FY2023). Sales dropped to $21.36 billion from $22.35 billion in the previous year (May 3, 20 twenty-three to May 3, 20 twenty-four). Despite the decline in sales and net income, Lowe's beat Wall Street expectations for both earnings per share ($3.06 vs $2.94) and revenue ($21.36 billion vs $21.12 billion). The company attributed the decline in sales to a decrease in DIY (do-it-yourself) spending, which accounted for about 80% of Lowe's business.
Lowe's Q1 FY2024 Earnings: Net Income Down, Beats Expectations Amidst Decrease in DIY Spending and Economic Uncertainty

Lowe's, the home improvement retailer, reported first quarter earnings for the fiscal year 2024 on May 21, 2024. The company's net income fell to $1.76 billion or $3.06 per share from $2.26 billion or $3.77 per share in the same quarter last year (Q1 FY2023). Sales dropped to $21.36 billion from $22.35 billion in the previous year (May 3, 20 twenty-three to May 3, 20 twenty-four).

Despite the decline in sales and net income, Lowe's beat Wall Street expectations for both earnings per share ($3.06 vs $2.94) and revenue ($21.36 billion vs $21.12 billion). The company attributed the decline in sales to a decrease in DIY (do-it-yourself) spending, which accounted for about 80% of Lowe's business.

Lowe's CEO, Marvin Ellison, stated that the home improvement customer is still expressing concerns about higher cost of living and the state of the overall economy. He also mentioned that a mix of factors kept customers from spending more freely, including continued pressure from inflation and uncertainty around when the Federal Reserve may cut interest rates.

Lowe's reported a decline in comparable sales (sales at stores open for at least one year) of 4.1%. This was an improvement compared to the previous quarter's decline of 4.3%. The company anticipates total sales for FY2024 to be between $84 billion and $85 billion, with earnings per share estimated around $12 to $12.30.

Lowe's competitors, Home Depot, also reported their Q1 earnings on May 17, 2024. Home Depot missed revenue expectations due to a tougher housing market and a delayed start to the spring season. The company expects total sales for FY2024 to be around $135 billion with earnings per share estimated at $9.85.

Despite the decline in sales, Lowe's stock closed Monday, May 20, 2024 at $229.17 and has gained nearly 3% this year compared to the S&P 500's gains of around 11%.


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Confidence

90%

Doubts
  • Are there any non-financial factors that could have influenced Lowe's Q1 FY2024 earnings?
  • How accurate are the company's predictions for total sales in FY2024?
  • Is the decline in DIY spending a temporary or long-term trend?

Sources

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Lowe's beats estimates, even as DIY consumers pull back

Yahoo Finance Brooke DiPalma Tuesday, 21 May 2024 17:02
  • Unique Points
    • Lowe’s investment in the Total Home strategy was reflected in growth in Pro and online sales.
    • Serving pros like roofers and contractors could drive sales for Lowe’s.
  • Accuracy
    • Lowe’s posted revenue of $21.36 billion, higher than the expected $21.13 billion.
    • Same-store sales fell 4.1%.
    • CEO Marvin Ellison stated that the company performed well in a challenging home improvement environment.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (90%)
    There are no blatant fallacies in the article. However, there is an example of a hidden assumption and an appeal to authority. The hidden assumption is that Lowe's customers pulling back their hammers and nails is solely due to 'partially offset by positive comparable sales in Pro and online.' This assumes that all other factors are held constant, which may not be the case. The appeal to authority comes when the article cites Telsey Advisory Group's Joe Feldman's comment without critically evaluating it. Additionally, there is a dichotomous depiction of consumers choosing 'experiences over home renovations,' implying that these are the only two options available.
    • Assumes that positive comparable sales in Pro and online fully offset the decrease in DIY customers:
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

88%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Lowe's earnings: What home prices, rates mean for retailer

Yahoo Finance Seana Smith Tuesday, 21 May 2024 17:04
  • Unique Points
    • Lowe’s managed to narrow sales declines compared to previous forecasts despite lower gross margins and a widening margin gap between Home Depot.
    • Home price appreciation is a positive driver for Lowe’s but higher rates could negatively impact the business if turnover slows.
  • Accuracy
    • Lowe’s beat earnings estimates with revenue of $21.36 billion and gains of $3.06 per share.
    • Strong execution and enhanced customer service helped boost Q1 results for Lowe’s.
  • Deception (70%)
    The author makes several statements that could be considered editorializing or pontification. For example, she states 'But despite that, it did come in better than expected.' and 'So let’s talk about what exactly going on Monday is ahead here for Lowe’s for that.' These statements are not factual and do not add any value to the article. Additionally, the author quotes Michael Baker making statements about home price appreciation being a positive for Lowe's, but then later in the article mentions that turnover is way down and there are other pressures facing consumers as negatives. The author does not make it clear how these positives and negatives balance out or what impact they will have on Lowe's overall. This selective reporting of information could be misleading to readers.
    • But despite that, it did come in better than expected.
    • So let’s talk about what exactly going on Monday is ahead here for Lowe’s for that.
  • Fallacies (90%)
    The article contains a few informal fallacies and appeals to authority. It includes an expert opinion from Michael Baker of D.A. Davidson which is an appeal to authority. Additionally, there are some inflammatory rhetorical phrases such as 'weakening consumer' and 'lows seeing a 4% decline in comp sales', which create a negative tone without providing evidence.
    • The weakening consumer is weighing on retailers lows seeing a 4% decline in comp sales in this latest quarter.
    • Lowe’s seeing fewer consumers roll up their sleeves and spend big on DIY home projects, but CEO Marvin Ellison isn’t so worried as loyalty programs and online spending are reportedly offsetting any pull back concerns.
    • All right. Well, the weakening consumer is weighing on retailers lows seeing a 4% decline in comp sales in this latest quarter.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Lowe's beats on earnings and revenue, even as consumers spend less on DIY projects

CNBC News Melissa Repko Tuesday, 21 May 2024 10:21
  • Unique Points
    • Net income fell to $1.76 billion compared with $2.26 billion in the same quarter last year.
    • Sales dropped from $22.35 billion in the year-ago period.
  • Accuracy
    • Lowe’s reported earnings per share of $3.06 for the fiscal first quarter, exceeding the expected $2.94.
    • Revenue was reported as $21.36 billion, surpassing the expected $21.12 billion.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Lowe's Earnings Fall 17% As Same-Store Sales Skid For Sixth Consecutive Quarter

Investors.com Financial News Site Analysis - Comprehensive Report on Market Coverage and Analysis - Overall Rating: 90/100 (Highly Reliable, Informative, and Engaging Source of Financial Information). Investor's Business Tuesday, 21 May 2024 13:36
  • Unique Points
    • Lowe’s reported better-than-expected first-quarter earnings and revenue
    • Q1 EPS dropped 17% to $3.06 per share with revenue falling more than 4% to $21.36 billion
    • CEO Marvin Ellison said they rolled out new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories
  • Accuracy
    • Same-store sales decreased 4.1%
    • Q1 EPS dropped 17% to $3.06 per share
    • Same-store sales decreased for the sixth consecutive quarter
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (95%)
    The article contains an appeal to authority when it mentions the consensus among analysts predicting Lowe's first-quarter earnings and sales. However, no fallacies were found that significantly impacted the overall quality of the article.
    • The consensus among analysts also has same-store sales decreasing 5.5%.
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (100%)
    None Found At Time Of Publication

97%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Lowe’s (LOW) Q1 2024 Earnings: Key financials and quarterly highlights

News.alphastreet.com Tuesday, 21 May 2024 11:28
  • Unique Points
    • Lowe’s reported first quarter 2024 earnings with total sales of $21.4 billion.
    • Net earnings were $1.8 billion or $3.06 per share in Q1 2024.
  • Accuracy
    • Total sales decreased by $1.9 billion compared to the prior-year period.
    • Revenue and earnings beat estimates for the quarter.
    • Full year sales expected to be between $84-85 billion and EPS of approx. $12.00-12.30.
    • Comparable sales are predicted to decrease by 2-3% from the previous year.
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (100%)
    None Found At Time Of Publication
  • Bias (100%)
    None Found At Time Of Publication
  • Site Conflicts Of Interest (100%)
    None Found At Time Of Publication
  • Author Conflicts Of Interest (0%)
    None Found At Time Of Publication