EU and US could reach trade deal this weekend - Reuters
Investing.com - Lowe’s Companies (NYSE:LOW) has reported net sales in the first quarter that were roughly in line with estimates, even as the home improvement chain flagged "near-term uncertainty".
In a statement, the retailer’s CEO Marvin Ellison added that housing market headwinds were also clouding the outlook, although it moved to reiterate its full-year guidance for sales and earnings.
Net sales came in at $20.93 billion in the three months ended on May 2, compared with $21.36 billion a year ago and matching Bloomberg consensus expectations.
The group noted that comparable sales for the quarter decreased by 1.7% due to unfavorable weather earlier during the period, but said this was partially offset by resilience in online demand and for its services catering to construction professionals.
Gross profit dipped by 1.5% year-over-year to $6.99 billion. Analysts had called for $6.96 billion.
Shares in Lowe’s were higher by more than 2% in premarket U.S. trading on Wednesday.
The results come as investors are keen to see how U.S. President Donald Trump’s sweeping tariff agenda could impact pricing strategies across the retail industry. Walmart (NYSE:WMT), in particular, drew criticism from Trump after it suggested last week that it would likely raise prices soon.
Home Depot (NYSE:HD), a peer of Lowe’s, said on Tuesday that it would leave prices unchanged, although it warned that some of its items may disappear from shelves due to the levies.
Lowe’s did not provide immediate commentary on its pricing plans. Executives will hold a post-earnings call with analysts later on Wednesday.
Consumer sentiment has shown signs of deteriorating because of the tariffs, which economists have warned could dent growth and drive up inflation. Against this backdrop, U.S. existing home sales have recently declined, fueling worries over demand for home improvement projects.
Data from NRF cited by Reuters found that debit and credit card sales at building and garden supply stores dropped by 2% year-on-year in May.