Lowe's (LOW) stock is down on Tuesday even though the company's first-quarter profit beat expectations. Lowe's cited declines in sales in the do-it-yourself (DIY) category as consumers retreated.
Yahoo Finance's Brooke DiPalma digs into the details of Lowe's earnings report and provides insight into the efforts the company is making to navigate the current climate of cautious consumers.
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video transcript
What did Lowe's also report?
Please let me know if you have takeout.
Yes, the company also beat profits, but again, expectations were low.
In a similar story, they also cite consumers who are cautious on the phone.
The CFO said consumers are sitting on the sidelines, digesting and adjusting to the financial tightening.
Now, similar to what we heard at Home Depot, seam sauce sales were down 4.1% as DIY everyday customers pulled out, and DIY customers were actually a bigger customer at Lowe's than Home Depot. occupies the base.
This represents approximately 75% of Lowe's shopper base.
Meanwhile, professional businesses look to the strength and installation of roof concrete and block drywall to offset the decline in DIY customers.
Online sales also saw sales at Lowe's City of com.
They've actually announced that they're investing in their Diy Loyalty program, they're expanding same-day delivery through doordash, and they're also partnering with Instacart.
Therefore, they have confirmed that online sales work for them.
Stock prices are falling. Now, the stock price is falling due to that cautious consumer.
that's right.
It's interesting, I think this is all a game of expectations and expectations. Because with Macy's, it was similar to Lowe's in terms of what they expect, what they see, and the temperature from their customers. They get punished even more for saying the same thing.
However, I think that is relative to expectations regarding stock price trends.
Yeah.
I would like to point out that Lowe's stock was down about 2.5% heading into the close.
But the truth is, Lowe's customers seem to say we have it all.
We're just waiting for that customer to come back to the store and have some extra cash to put effort into renovating their home.
He said customers are still looking for DIY home rental professional projects and an experience that goes beyond the housing market.
They are just waiting for it to rebound.
Brooke also wonders how much the pandemic still resembles a hangover?
I mean, how many?
Has been modified.
They did this and they did all that, right?
And I can still see it now.
Yes, many people bought new homes during the pandemic and really invested in the homes they purchased.
So now again, like I said, Lowe is really waiting for that new customer to buy a home and have the money, considering interest rates and how much customers are paying for homes these days. Think about what you are doing.
After all, even if you got the house, you wouldn't have the money to put it back.
right.
Okay.
Thank you very much.
Thank you, Brooke.