Lowe’s Companies (NYSE:LOW) gained in premarket action despite beating consensus estimates with its Q1 earnings report and sticking by its full-year guidance despite the macroeconomic backdrop.
For the first quarter, the North Carolina-based specialty retailer reported comparable sales decreased by 1.7%, which was better than the consensus estimate for a decline of -2.0%. The company noted that unfavorable weather earlier in the quarter was partially offset by mid-single-digit Pro and online comparable sales growth.
“Strategic investments in technology, inviting store environments, and our dedicated associates continue to solidify our commitment to serving our customers and communities,” noted CEO Marvin Ellison.
The company’s gross margin rate improved by 20 basis points to 33.4% of sales. Cost of sales was 66.6% of total sales, in comparison to 66.8% a year ago. Operating income was 11.9% of sales, vs. 12.4% a year ago. GAAP EPS was reported at $2.92 vs. $2.87 consensus and $3.06 a year ago.
During the quarter that ended on May 2, Lowe’s (NYSE:LOW) paid $645 million in dividends.
Lowe’s (LOW) said it expects total sales of approximately $83.5 billion to $84.5 billion ($84.0 billion midpoint) for the full year vs. $84.3 billion consensus, comparable sales to be flat to +1.0% compared to a year ago, and adjusted EPS of $12.15 to $12.40 (midpoint $12.275) vs. $12.21 consensus.
Shares of Lowe’s (LOW) were up 2.6% in premarket trading. Home Depot (HD) was 0.4% higher.