Chilly spring weather was blamed on home improvement retailer Lowe’s drop in first-quarter fiscal year sales, coming in at $23.7 billion compared to $24.4 billion in the first quarter of 2021, according to the company’s earnings report on Wednesday (May 18).
Its biggest rival Home Depot on Tuesday (May 17) reported sales of $38.9 billion for the first quarter of this fiscal year, up 3.8% over last year, hitting $1.4 billion. Net earnings were $4.2 billion, up from $4.1 billion the previous year.
See also: Home Depot Q1 Earnings Report Shows DIY Trend Still Strong
Lowe’s Chairman, President and CEO Marvin R. Ellison said sales in the first quarter aligned with the company’s expectations, “excluding our outdoor seasonal categories,” which were negatively affected by the “unseasonably cold temperatures in April.”
Ellison added that 75% of its customer base is DIY, making its first-quarter sales “disproportionately impacted” by the chillier temperatures this spring.
“Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May,” he said.
Read more: Lowe’s Rolls Out Solid Home Improvement Forecast
Lowe’s shares fell 4.1% in premarket trading, and are down close to 25% this year, per reports.
The Mooresville, North Carolina-based company said net earnings were $2.3 billion, in line with prior-year results, and diluted earnings per share (EPS) were $3.51 for the quarter ended April 29, compared to diluted EPS of $3.21 in the first quarter of 2021.
Lowe’s affirmed its 2022 outlook for the full year, forecasting $13.10 to $13.60 per share, with revenue in the range of $97 billion to $99 billion.
Related: Lowe’s Unveils DIY-U by Lowe’s Digital How-to Project Workshop Portal
Lowe’s operates 1,971 home improvement and hardware stores in the U.S. and Canada, with an estimated 19 million customer transactions a week. Lowe’s and its related businesses operate or service close to 2,200 home improvement and hardware stores with a workforce topping 300,000 employees.
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