The tide gradually seems to be turning for the better (albeit slowly) for retailers. Shares of home improvement retailer Lowe’s (NYSE:LOW) are ticking higher today after the company delivered better-than-anticipated numbers for the first quarter and reaffirmed its financial outlook.
Not a Very Convincing Performance for LOW
Despite a year-over-year decline of 4.3%, revenue of $21.4 billion fared better than estimates by $800 million. Similarly, the EPS of 3.67 outpaced expectations by a wide margin of $0.72.
During the quarter, Lowe’s comparable sales declined by 4.1%, primarily due to lower discretionary spending in the DIY big-ticket category. This impact was partially offset by positive comparable sales in the company’s pro and online channels. Furthermore, Lowe’s executed a nationwide rollout of its new DIY loyalty program and expanded its same-day delivery options in Q1. Additionally, the positive trends in its pro and online channels are a promising development for the rest of the year.
But LOW’s Outlook Saved the Day
Importantly, investor sentiment in the stock is buoyant today after the company reaffirmed its financial outlook for the full year. For fiscal year 2024, Lowe’s expects total sales in the range of $84 billion to $85 billion. EPS for the year is anticipated to land in the range of $12 to $12.30. Additionally, the retailer expects its comparable sales to decline by 2% to 3% for the full year. The company operated a total of 1,746 stores as of May 3, 2024.
Is LOW Stock a Buy, Sell, or a Hold?
Today’s price gains further add to the nearly 17% rise in LOW’s share price over the past six months. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average LOW price target of $254.13. However, analysts’ views on the stock could see a revision following today’s earnings report.
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