Lowe's quarterly sales decline slower than expected due to steady demand for small repairs

Lowe's reported better-than-expected quarterly sales decline, indicating a steady demand for small repairs amidst a challenging economic environment. The company's ability to cater to customers looking for non-discretionary and smaller repair works, such as plumbing and exterior painting, has contributed to maintaining sales growth. With the rise in prices and interest rates, customers are more inclined towards affordable home improvement projects, boosting Lowe's performance.

Lowe's has also successfully retained demand from professional customers like builders and contractors, while experiencing a slight decline in spending from DIY customers focusing on home decor. The company's strategy to launch a DIY loyalty program and enhance same-day delivery services has helped it gain market share in key categories.

Despite a 4.1% decrease in same-store sales in the first quarter, Lowe's exceeded analysts' expectations, posting a profit of $3.67 per share for the quarter ended May 3. The company remains optimistic about meeting its annual sales and profit goals for the fiscal year, aligning with the positive outlook of the home improvement industry.

Looking ahead, Lowe's is expected to navigate the evolving market dynamics by capitalizing on the ongoing demand for small repairs and focusing on customer engagement and service offerings.