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Comparable sales for the three months ended on May 5 slipped by 4.3%, while total sales during the period fell to $22.35 billion from $23.66B in the corresponding timeframe last year.
In a statement, Lowe’s chairman Marvin Ellison said the decrease in the top-line result was driven by “record lumber deflation and unfavorable spring weather.” Demand for the high-priced items like grills and patio furniture sold by the company was also weaker than anticipated, in the latest sign that recent cost-of-living pressures are leading customers to rein in spending on non-essential items.
Ellison said this trend convinced the business to bring down its 2023 guidance. Lowe’s now expects comparable sales to slide by 2% to 4% compared to the prior year, down from its initial estimate that the figure would either stay flat or drop by as much as 2%.
Total sales, meanwhile, are now seen at $87B to $89B. Lowe’s had previously expected the number to come in at $88B to $90B.
However, Lowe’s did get a boost in its most recent quarter from the 2022 sale of its Canadian retail business, which helped lift diluted earnings per share by $0.10. But excluding this benefit, the company still posted a 5% year-on-year increase in adjusted diluted EPS to $3.67.
Shares edged lower by more than 1% in premarket U.S. trading on Tuesday.
