FILE- In this May 21, 2018, file photo, a family shops for washing and drying machines at Lowe’s Home Improvement store in East Rutherford, N.J. Lowe’s Companies Inc. reports earnings on Wednesday, May 22, 2019. (AP Photo/Ted Shaffrey, File)Shares of Lowe’s tumbled 10% at the opening bell Wednesday after the home improvement retailer cut its outlook for the year after a weak first quarter.
The company cited rising costs and outdated pricing tools. Lowe’s recently acquired an analytics platform it says will modernize its pricing process and improve margins.
Lowe’s is trying to close the gap with rival Home Depot, which reported better than expected profits and sales numbers Monday. Shares of Lows Companies Inc. are up almost 30% in the last 12 months, compared with a 2.5% increase at Home Depot Inc.
The company earned of $1.05 billion in the quarter, or $1.31 per share. Adjusted earnings were $1.22 per share, far short of the per share earnings of $1.33 expected by Wall Street, according to a survey by Zacks Investment Research. The company had earnings of $988 million and diluted earnings per share of $1.19 in the first quarter last year.
Lowe’s revised its 2019 earnings per share outlook downward to a range of $5.45 to $5.65, from a previous range of $6 to $6.10.