Investing.com – Lowe’s (NYSE:) reported first-quarter net sales that beat analysts’ estimates as the DIY retailer was helped by growth in its online offerings and services for professionals.
Like other major chains, Lowe’s has been hurt by customers choosing to put off purchasing big-ticket items needed for home improvement projects during a period of increased inflation and high interest rates.
However, the company said that decline in discretionary spending was partially offset by positive comparable sales from its digital store and Pro version, which serves contractors.
CEO Marvin Ellison added that Lowe’s has gained “market share in key categories” after launching a new nationwide loyalty program and expanding same-day delivery capabilities.
The North Carolina-based group’s net sales for the three months ended May 3 were $21.36 billion, down 4.4% from the year-ago period. However, the total exceeded the Bloomberg consensus forecast of $21.13 billion.
Diluted earnings per share fell to $3.06 from $3.77 a year ago. Operating margin fell to 12.4%, slightly above Wall Street estimates of 12.3%.
Lowe’s also reiterated its full-year guidance, with Ellison noting the company is “pleased” with the start of its spring performance. Full-year sales are forecast to be between $84 billion and $85 billion and diluted earnings per share will be between $12.00 and $12.30.
Lowe’s shares rose in pre-market trading in the United States on Tuesday.