Lowe's Q1 2019 Results
Sales for the first quarter increased 2.2% to $17.7 billion from $17.4 billion in the first quarter of 2018, and comparable sales increased 3.5%. Comparable sales for the U.S. home improvement business increased 4.2%.
In its battle to improve the customer experience and mitigate cost pressures, Lowe’s Companies recently rolled out a new model to improve associate engagement, tens of thousands of mobile devices, and is overhauling its pricing and point of sale (POS) systems.
The home improvement retailer attributed improved sales performance in its first quarter to its commitment to improving in-stocks and customer service, along with a focus on winning Pro customers.
“Our first quarter comparable sales performance is a clear indication that the consumer is healthy and our focus on retail fundamentals is gaining traction,” commented Marvin Ellison, Lowe’s president and CEO.
However, Ellison also noted the company is taking actions to more systematically analyze and implement retail price changes to mitigate cost pressure.
“Our recent acquisition of the Retail Analytics platform from Boomerang Commerce will also assist in modernizing and digitizing our approach to pricing,” he noted.
Lowe’s will implement changes to its pricing and POS systems, and noted ineffective legacy pricing tools and processes contributed to gross margin contraction in the quarter which impacted earnings.