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Shares of Lowe's, which also reported same-store
sales growth below analysts' estimates, fell about 7 percent in
premarket trading on Wednesday.
Lowe's total same-store sales rose 5.2 percent in the first
quarter. Analysts on average had expected a 6.1 percent rise,
according to Consensus Metrix.
In contrast, bigger rival Home Depot Inc's <HD.N> quarterly
same-store sales handily beat analysts' estimates on Tuesday as
the company benefited from higher spending on home improvement
after a harsh winter.
Lowe's maintained its full-year comparable sales growth forecast
of 4.0-4.5 percent, but this could be tough to achieve, analysts
said.
Lowe's first-quarter performance leaves little room for error
and the road ahead will get tougher for the company as broader
retail sales trends appear somewhat erratic to weak, Janney
Capital Markets analyst David Strasser wrote in a note.
Lowe's net income rose to $673 million, or 70 cents per share,
in the quarter ended May 1 from $624 million, or 61 cents per
share, a year earlier.
Net sales rose 5.4 percent to $14.13 billion.
Analysts on average had expected a profit of 74 cents per share
and revenue of $14.28 billion, according to Thomson Reuters
I/B/E/S.
Lowe's shares were trading at $67 before the bell.
Up to Tuesday's close, the stock had risen nearly 58 percent in
the past 12 months, while Home Depot's shares had risen about 47
percent.
(Reporting by Nayan Das in Bengaluru; Editing by Kirti Pandey)
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