What to expect when Lowe’s Companies (LOW) reports Q1 2024 earnings results

Shares of Lowe’s Companies, Inc. (NYSE: LOW) were down over 1% on Monday. The stock has gained over 4% year-to-date. The home improvement retailer is scheduled to report its first quarter 2024 earnings results on Tuesday, May 21, before market open. Here’s a look at what to expect from the earnings report:

Revenue

Analysts are projecting revenue of $21.1 billion for the first quarter of 2024, which compares to sales of $22.3 billion reported in the year-ago period. In the fourth quarter of 2023, net sales fell 17% year-over-year to $18.6 billion.

Earnings

The consensus estimate for Q1 2024 EPS is $2.94, which compares to adjusted EPS of $3.67 reported in Q1 2023. In Q4 2023, EPS increased 12% YoY to $1.77.

Points to note

Last quarter, Lowe’s results were impacted meaningfully by a slowdown in DIY demand, as this segment accounts for a large part of the company’s sales. Harsh weather, which caused a drop in traffic, also took a toll on results during the period. Like its peer Home Depot, Lowe’s too saw customers putting off big-ticket discretionary purchases and taking on smaller, non-discretionary ones.

On its last quarterly call, Lowe’s said it remains uncertain about the near-term macro environment. Factors such as interest rate cuts and housing turnover are expected to put pressure on home improvement spending in 2024, which provides a somewhat bleak outlook for Q1. The company has forecast comp sales for full-year 2024 to decline 2-3% and it expects comps for the first quarter to be consistent with Q4 2023 results, approx. 300 basis points below the bottom of the full year guidance.

Lowe’s has launched a DIY loyalty program, through which it can provide personalized offers and experiences, to its members. This is expected to help drive traffic and return visits, thereby increasing loyalty and demand over time. This initiative, along with the company’s investments in its digital and omnichannel capabilities could yield benefits in Q1.