Lowe’s Cos. Inc. reported that online sales grew about 1% in the first quarter of fiscal 2024 ended May 3. Meanwhile, Lowe’s total sales declined 4.0% to $21.4 billion, and comparable sales fell 4.1%.
That was a significant improvement from Q4, when total sales declined 17% and comparable sales dropped 6.2%.
The retailer said B2B and online sales growth partially offset declines from do-it-yourself (DIY) customers, especially on bigger projects.
“We are pleased with our start to spring, driven by strong execution and enhanced customer service,” said Marvin R. Ellison, president and CEO. “This quarter, we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories. We continue to gain momentum with our Total Home strategy, reflected in our growth in Pro and online,” he continued.
Net earnings were $1.8 billion, down from $2.3 billion in Q1 2023.
Lowe’s ranks No. 11 in the Top 1000, Digital Commerce 360’s database of North America’s online retailers by web sales. The retailer is in the Hardware & Home Improvement category.
Lowe’s Q1 online sales
While online sales grew year over year, Lowe’s did not share a dollar value for online sales or specify what percentage of total sales were made online in Q1.
However, Lowe’s did improve conversion rates on its website in Q1, Ellison told investors. He also noted the retailer’s new same-day delivery partnerships with DoorDash and Shipt.
“Our objective is simple, giving customers access to the home improvement products they need, however they choose to shop,” Ellison said. “And we’re tailoring our digital experience to support the unique needs of different customer shopping journeys based on the type of project. And we’re also using virtual and mixed reality to make it easier for customers to explore and visualize different possibilities for their home.”
He added that the additions support Lowe’s other delivery options, including Instacart.
The SpringFest sale was successful in driving online traffic to Lowe’s, he said. Attracting customers early in the spring season is important because they continue coming back throughout the season for other gardening needs, he added.
Lowe’s DIY sales in Q1
Lowe’s also completed the national rollout of its rewards program for DIY customers in Q1. The launch and early customer adoption have been successful both in stores and online, Ellison said.
That was essential to business thanks to continued pressure in the housing market, Lowe’s said.
“Uncertainty around interest rate cuts, stubborn inflationary pressures and a consumer still showing a preference towards spending on discretionary services and experiences continue to weigh on the DIY home improvement demand,” Ellison said. “And the outlook for lower mortgage rates and improved housing turnover remains uncertain.”
Consumers remain reluctant to invest in large home improvement projects. Customers have expressed concerns about high costs of living and spending on other priorities besides their homes, Ellison said. Consumers continued to hunt for value, especially in the kitchen, flooring, bath and appliances categories.
However, Lowe’s still recorded better-than-expected results, he added.
Lowe’s Q1 B2B
Lowe’s grew sales among contractors and other home improvement professionals in Q1, the retailer said. It refers to them as Pros.
“Our strategic investments to improve the Pro experience are driving increased sales and improved customer engagement,” he said. “Specifically, investments to improve service levels as well as our expanded brand portfolio that now includes Klein Tools are strengthening our relationships with this core customer.”
Pro customers were a more resilient cohort than DIY customers in the quarter. Lowe’s is specifically targeting small and medium-sized Pros including repair and remodel contractors and property managers.
Lowe’s has plans to continue investing to grow Pro sales. The retailer is building its capacity to deliver larger orders to job sites and opening new Pro supply branches around the country.
Lowe’s earnings
For its fiscal first quarter ended May 3, 2024, Lowe’s reported:
- Total sales declined 4% year over year to $21.4 billion.
- Comparable sales declined 4.1%.
- Net earnings were $1.8 billion, down from $2.3 billion in Q1 2023.
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