Lowe's Q1 Earnings & Sales Beat Estimates, Comps Decline 1.7% Y/Y

Core Insights - Lowe's Companies, Inc. reported first-quarter fiscal 2025 results with both earnings and net sales surpassing the Zacks Consensus Estimate, although both metrics showed a year-over-year decline [1][3] Financial Performance - Quarterly earnings were $2.92 per share, exceeding the Zacks Consensus Estimate of $2.88, but down 4.6% from $3.06 per share in the same period last year [3] - Net sales reached $20,930 million, slightly above the consensus estimate of $20,924 million, but down 2% year over year [3] - Comparable sales declined by 1.7%, influenced by adverse weather conditions, although there was mid-single-digit growth in Pro and online comparable sales [4] Margin and Cost Analysis - Gross profit decreased by 1.5% year over year to $6.99 billion, while gross margin expanded by 20 basis points to 33.4% [5] - Selling, general and administrative expenses totaled $4.05 billion, up 0.9% year over year, with this metric increasing as a percentage of net sales to 19.3% [5] - Operating income decreased by 6% to $2.49 billion, with the operating margin decreasing by 50 basis points to 11.9% [6] Financial Health - The company ended the quarter with cash and cash equivalents of $3.05 billion and long-term debt of $30.5 billion [7] - Cash flow from operations for the first three months of fiscal 2025 was $3.38 billion, with a dividend payment of $645 million [8] Future Outlook - Management anticipates total sales between $83.5 billion and $84.5 billion for fiscal 2025, with comparable sales expected to be flat to up 1% [11] - Projected operating margin is between 12.3% and 12.4%, with earnings per share expected in the range of $12.15 to $12.40 [11] - Capital expenditures are anticipated to be approximately $2.5 billion for fiscal 2025 [11] Stock Performance - Lowe's shares have declined by 2.5% over the past three months, compared to a 3.1% decline in the industry [12]