By Chelsey Dulaney
Lowe's Cos. reported weaker-than-expected profit and revenue
growth in its first quarter, despite logging a 5.3% increase in a
key sales metric for its U.S. home improvement stores.
Shares fell 6.6% in premarket trading.
In a weak retail environment, home improvement stores like
Lowe's and peer Home Depot Inc. have been an outlier with consumers
showing more of a willingness to spend money replacing windows and
upgrading countertops than to splurge on fashion and everyday
goods.
On Tuesday, peer Home Depot Inc. reported strong sales growth
helped by healthy spending among wealthier Americans in an
improving housing market.
Meanwhile, other retailers have shown weakness. Wal-Mart Stores
Inc. on Tuesday reported a slim increase in U.S. sales and a drop
in profit. Macy's Inc. and Kohl's Inc. have reported weak sales in
the first months of the year.
For its part, Lowe's said its same-store sales at locations open
at least a year rose 5.2% in the quarter ended May 1. Sales at U.S.
Lowe's stores rose 5.3%.
Overall, Lowe's posted a profit of $673 million, or 70 cents a
share, up from $624 million, or 61 cents a share, a year
earlier.
Net sales grew 5.4% to $14.13 billion.
Analysts had expected earnings of 74 cents a share and revenue
of $14.3 billion in revenue for the period, according to Thomson
Reuters.
The company backed its full-year outlook.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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