Lowe's and Home Depot Report Mixed Q1 Results Amid Housing Slowdown

Lowe's and Home Depot, two of the largest home improvement retailers in the U.S., reported their first-quarter earnings on May 19, revealing mixed results amid a challenging housing market. Lowe's reported net income of $1.63 billion, or $2.90 per share, a slight decline from the previous year, but revenue increased by about 10%. Comparable sales rose by 0.6%, driven by online sales growth of 15.5% and strength in appliances, home services, and professional contractor sales. The company reaffirmed its full-year guidance, projecting total sales between $92 billion and $94 billion, a 7% to 9% increase from the prior year. Home Depot, meanwhile, reported first-quarter sales of $41.8 billion, a 4.8% year-over-year increase, with adjusted earnings per share of $3.43, down slightly from $3.56 in the same period last year. Net earnings dipped 4.2% to $3.29 billion, attributed to stronger demand for seasonal home-improvement products and a revamped product-delivery service. Both companies highlighted resilience in consumer spending despite economic headwinds, including high gas prices and a slowing housing market. Lowe's CEO Marvin Ellison emphasized the company's focus on its 'Total Home' strategy, while Home Depot noted the strength of its core shopper base.