Despite a decline in consumer spending on DIY projects, Lowe's still manages to exceed earnings and revenue expectations.

• Lowe's beat first-quarter earnings and revenue expectations.
• The home improvement retailer stated that the decline in yearly sales was due to a decrease in the purchase of expensive DIY products by customers.
• Lowe's results follow a revenue miss from its rival Home Depot.

On Tuesday, Wall Street's quarterly earnings and revenue expectations were exceeded, despite a decrease in sales of expensive products due to do-it-yourself customers.

Last week, Home Depot's results mirrored those of the home improvement retailer. Despite citing a challenging housing market and a delayed start to spring as reasons, the company fell short of revenue expectations.

Lowe's has maintained its full-year sales forecast, predicting total sales of between $84 billion and $85 billion, a decrease from $86.38 billion in fiscal 2023. The company anticipates a decline in comparable sales of between 2% and 3% compared to the previous year and expects earnings per share of approximately $12 to $12.30.

According to a survey of analysts by LSEG, the company's fiscal first quarter results differed from Wall Street's expectations.

• Earnings per share: $3.06 vs. $2.94 expected
• Revenue: $21.36 billion vs. $21.12 billion expected

Lowe's net income decreased to $1.76 billion, or $3.06 per share, in the three-month period ending May 3, from $2.26 billion, or $3.77 per share, in the same period a year prior.

Lowe's experienced a year-over-year sales decline for the fifth consecutive quarter, with sales dropping from $22.35 billion in the previous year.

While Home Depot generates roughly half of its sales from professionals, Lowe's only receives about 20% to 25% of its business from this group.

Lowe's has been attempting to attract more professional customers, as stated in their news release. CEO Marvin Ellison mentioned that the company's gains with professionals and online sales growth helped to partially offset a decline in DIY spending.

Lowe's is currently experiencing a decline in sales compared to the same quarter a year ago, despite having previously slashed its full-year outlook and warned investors of a potential "pullback in discretionary consumer spending."

Since then, Lowe's sales have decreased from the previous year in each of the three quarters.

Lowe's shares closed at $229.17 on Monday, giving the company a market value of $131.13 billion. Despite a 3% increase in stock value this year, Lowe's has not kept pace with the 11% gains of the S&P 500.

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