Q1 2024 Lowe's Companies Inc Earnings Call Transcript
Key Points
- Lowe's Companies Inc (LOW) reported first quarter sales of $21.4 billion, with better-than-expected spring seasonal sales.
- The company saw positive growth in Pro and online sales, reflecting the success of their total home strategy.
- Lowe's Companies Inc (LOW) launched a successful SpringFest campaign, which resonated well with customers, especially in smaller ticket lawn and garden projects.
- The introduction of new brands like Toro and the expansion of existing brands like Klein Tools have strengthened Lowe's Companies Inc (LOW)'s product portfolio.
- The company rolled out a new DIY loyalty program, MyLowe's Rewards, which has seen early positive customer adoption and engagement.
- Comparable sales were down 4.1% from the same period last year, indicating a decline in overall sales performance.
- There was continued pressure in DIY bigger ticket discretionary spending, impacting overall sales.
- Gross margin decreased by 49 basis points from last year, driven by ongoing supply chain investments and early spring traffic-driving promotions.
- SG&A expenses were up, driven by sales deleverage and the cycling of a favorable legal settlement.
- The outlook for lower mortgage rates and improved housing turnover remains uncertain, affecting the home improvement demand.
Good morning, everyone. Welcome to Lowe's Companies First Quarter 2024 Earnings Conference Call. My name is Rob, and I'll be your operator for today's call. As a reminder, this conference is being recorded. I'll now turn the call over to Kate Pearlman, Vice President of Investor Relations and Treasurer.
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Thank you, and good morning. Here with me today are Marvin Ellison, Chairman and Chief Executive Officer; Bill Boltz, our Executive Vice President, Merchandising; Joe McFarland, our Executive Vice President, Stores; and Brandon Sink, our Executive Vice President and Chief Financial Officer.
I would like to remind you that our notice regarding forward-looking statements is included in our press release this morning, which can be found on Lowe's Investor Relations website. During this call, we will be making comments that are forward-looking, including our expectations for fiscal 2024. Actual results may differ materially from those expressed or implied as a result
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