Lowe’s First-Quarter Sales Drop After Unseasonably Cold April

Sales have improved in May as the weather warmed up, Mr. Ellison said in a statement. The company backed its outlook for the year, even amid an increasingly uncertain macroeconomic backdrop.

Lowe’s readout comes a day after Home Depot raised its outlook after a better than expected start to the year. Home Depot, which has long derived a larger portion of its sales from contractors than Lowe’s, also cited the late arrival of spring as an impediment to first-quarter sales. Home Depot still posted an increase in its top line, as an inflation-driven 11.4% rise in spending per shopping trip offset a drop in total transactions for the quarter.

For the period ended April 29, Lowe’s reported a slight increase in profit to $2.33 billion. Per-share earnings rose to $3.51 from $3.21 a year ago partly due to a reduced share count. Lower operating expenses helped improve profit margin. Analysts surveyed by FactSet had been expecting earnings of $3.22 a share.

Overall revenue fell 3.1% to $23.7 billion, just short of Wall Street expectations of $23.8 billion, according to FactSet.

Lowe’s shares fell 4.1% in premarket trading. They are down nearly 25% this year.

Other retailers are posting mixed results, weighed down by higher costs.

Walmart Inc.

on Tuesday reported higher sales in their quarterly earnings report, but profit was hurt by rising costs and operational missteps, including too much inventory. The retailer’s shares on Tuesday posted the largest percent decline in more than three decades.

Target Corp.

on Wednesday said sales increased in its recently completed quarter, but it was stung by bigger-than-expected fuel and freight costs. Its shares fell more than 20% in premarket trading.

The sector largely benefited with significant sales bumps during the height of the pandemic as consumers shifted their spending to items amid shutdowns of vacations and activities. Government stimulus checks also boosted disposable income.

Now, the sales are moderating from the high levels, as consumer spending power is being dented from rising inflation.

Write to Dean Seal at dean.seal@wsj.com

Sales have improved in May as the weather warmed up, Mr. Ellison said in a statement. The company backed its outlook for the year, even amid an increasingly uncertain macroeconomic backdrop.

Lowe’s readout comes a day after Home Depot raised its outlook after a better than expected start to the year. Home Depot, which has long derived a larger portion of its sales from contractors than Lowe’s, also cited the late arrival of spring as an impediment to first-quarter sales. Home Depot still posted an increase in its top line, as an inflation-driven 11.4% rise in spending per shopping trip offset a drop in total transactions for the quarter.

For the period ended April 29, Lowe’s reported a slight increase in profit to $2.33 billion. Per-share earnings rose to $3.51 from $3.21 a year ago partly due to a reduced share count. Lower operating expenses helped improve profit margin. Analysts surveyed by FactSet had been expecting earnings of $3.22 a share.

Overall revenue fell 3.1% to $23.7 billion, just short of Wall Street expectations of $23.8 billion, according to FactSet.

Lowe’s shares fell 4.1% in premarket trading. They are down nearly 25% this year.

Other retailers are posting mixed results, weighed down by higher costs.

Walmart Inc.

on Tuesday reported higher sales in their quarterly earnings report, but profit was hurt by rising costs and operational missteps, including too much inventory. The retailer’s shares on Tuesday posted the largest percent decline in more than three decades.

Target Corp.

on Wednesday said sales increased in its recently completed quarter, but it was stung by bigger-than-expected fuel and freight costs. Its shares fell more than 20% in premarket trading.

The sector largely benefited with significant sales bumps during the height of the pandemic as consumers shifted their spending to items amid shutdowns of vacations and activities. Government stimulus checks also boosted disposable income.

Now, the sales are moderating from the high levels, as consumer spending power is being dented from rising inflation.

Write to Dean Seal at dean.seal@wsj.com