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>>> Lowe's stock plunges after mixed first quarter earnings -


Lowe's reported mixed fiscal-first-quarter earnings before the bell Wednesday.


CNBC

5-22-19


https://www.msn.com/en-us/money/companies/lowes-stock-plunges-after-mixed-first-quarter-earnings/ar-AABJBC7


Here’s how the company did, compared with what Wall Street was expecting, according to Refinitiv consensus estimates:

Earnings per share: $1.22 adjusted, vs. $1.33 estimated

Revenue: $17.74 billion, vs. $17.66 billion estimated

Same store sales: up 3.5%, vs. up 3.2% estimated

The retailer's stock was down nearly 10% in early trading.

"Our first quarter comparable sales performance is a clear indication that the consumer is healthy and our focus on retail fundamentals is gaining traction," Lowe's CEO and president Mark Ellison said in a company release.

Last quarter, Lowe's said it expected to earn between $6 and $6.10 per share on revenue growth of about 2%. It predicted, at the time, that same-store sales would rise about 3% in fiscal 2019. ""However, the unanticipated impact of the convergence of cost pressure, significant transition in our merchandising organization, and ineffective legacy pricing tools and processes led to gross margin contraction in the quarter which impacted earnings."

Lowe's has been in a period of transition since CEO Mark Ellison joined the retailer less than a year ago.

The home improvement retailer announced Monday they were acquiring the retail analytics platform from Boomerang Commerce with hopes that infusing technology into its core retail business will help bolster data-driven pricing and merchandising.

Lowe's results come just a day after the leader in the space Home Depot reported better-than-expected first-quarter earnings Tuesday. Lowe's rival's strong results came despite the second wettest February weather in U.S. history and a deflation in lumber costs. Home Depot reaffirmed its fiscal 2019 guidance.

As of Tuesday's market close, Lowe's market value was $88.4 billion, with shares are up more than 20% since the start of the year. Home Depot, with a market cap of about $211.1 billion's shares are up more than 11% year to date.

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