Shares of Lowe’s Companies Inc. LOW dropped 1.0% in premarket trading Tuesday, after the home improvement retailer beat fiscal first-quarter profit and sales expectations but cut its full-year outlook, citing lower demand. Net income for the quarter to May 5 was $2.26 billion, or $3.77 a share, after income of $2.33 billion, or $3.51 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $3.67 beat the FactSet consensus of $3.44. Total sales declined 5.5% to $22.35 billion, above the FactSet consensus of $21.60 billion, while the same-store sales decline of 4.3% missed expectations for a 3.4% decline. “We are pleased with the performance of our business despite record lumber deflation and unfavorable spring weather,” said Chief Executive Officer Marvin Ellison. “Although we delivered positive comparable sales in Pro and online for the first quarter, we are updating our full-year outlook to reflect softer-than-expected consumer demand for discretionary purchases.” For fiscal 2023, the company lowered its guidance ranges for adjusted EPS to $13.20 to $13.60 from $13.60 to $14.00 and for sales to $87 billion to $89 billion from $88 billion to $90 billion. The stock has gained 2.0% year to date through Monday while the S&P 500 SPX has advanced 9.2%.
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