Lowe's Q1 Net Rises 2.5 Percent
MOORESVILLE, N.C.-Although sales slipped, Lowe's was able to bolster its bottom line by 2.5 percent, to $540 million, in its first fiscal quarter ending on May 3.
Net sales were off 0.5 percent to $13.1 billion, including a decline of 0.7 percent in same-store sales. Robert Niblock, Lowe's chairman, president and CEO, attributed the slack in sales to cooler-than-normal temperatures, along with increased precipitation levels, in Lowe's regions, which combined to delay the start of the home-improvement retailer's selling season.
Niblock added that sales picked up some momentum in April after a particularly soft March, and that this traction has continued into the start of the second quarter. He said sales for indoor categories were "solid" in the first quarter.
Providing a lift to the bottom line, Lowe's gross margin added on 10 basis points to tally 34.8 percent in the quarter. Selling, general and administrative expenses declined 0.6 percent in dollars and three basis points as a percentage of sales, to 24.6 percent.
Lowe's also projected a total sales gain of 4 percent for all of the current fiscal year, along with a same-store sales increase of 3.5 percent. The company has slated 10 new store openings during this fiscal year.