Lowe’s, led by Black executive Marvin Ellison, posts $21.4 billion in Q1 2024 sales

Feyisayo Ajayi -

Key Points:

  • Home improvement giant Lowe’s reports a 4.1% decline in sales for Q1 2024, reflecting cautious consumer spending.
  • Pro contractor sales and online channels show growth, highlighting Lowe’s “Total Home” strategy.
  • CEO Marvin Ellison credits strong execution and customer service for a solid start despite lower profits.

Lowe’s Companies Inc. led by one of the world’s highest-ranking Black CEOs, Marvin Ellison,  reported lower sales to start 2024, reflecting a pullback in consumer spending on big-ticket home improvement projects. Total sales for the first quarter ended May 3, 2024, were $21.4 billion, down 4.1 percent from $22.3 billion in the prior-year period.

The decline was driven by a decrease in demand for discretionary items in the Do-It-Yourself (DIY) category, suggesting economic uncertainties are causing consumers to be more cautious.

Net earnings also slumped 22.35 percent, falling to $1.8 billion from $2.26 billion. Diluted earnings per share (EPS) of $3.06 for the quarter came in lower than the $3.77 reported in Q1 2023, which included a gain from the 2022 sale of the Canadian retail business.

Bright spots emerge despite overall decline

Despite the headline figures, Lowe’s reported positive growth in certain segments. The Pro division, catering to professional contractors, maintained steady sales. The company’s online sales channel also continued to experience growth.

Lowe’s Chairman, President, and CEO Marvin Ellison highlighted the company’s satisfaction with its early spring performance, crediting strong execution and improved customer service. He cited the national rollout of the new DIY loyalty program, expanded same-day delivery options, and market share gains in key categories as contributing factors.

“We continue to gain momentum with our Total Home strategy, reflected in our growth in Pro and online,” Ellison said. He expressed gratitude to frontline associates for their hard work, customer commitment, and focus on productivity.

Lowe’s reports lower assets in Q1 2024

Lowe’s, a major Fortune 50 company in the home improvement sector, operates over 1,700 stores across the United States and Canada with roughly 300,000 associates. As of May 3, 2024, the company had 1,746 stores encompassing 194.9 million square feet of retail selling space.

Under Ellison’s leadership, Lowe’s achieved $86.4 billion in revenue for 2023 and processes over 17 million customer transactions weekly. However, due to the recent decline in revenue and earnings, the company’s assets in Q1 2024 dipped 1.2 percent to $45.37 billion from $45.92 billion.

In addition to his executive role, Marvin Ellison holds a minority stake of 0.13 percent in Lowe’s Companies Inc., representing 224,800 ordinary shares. This stake is currently valued at over $50 million.