Lowe's Companies, Inc. (LOW.US) performed better than expected in Q1, but the sluggish trend cannot be ignored. Same-store sales guidance is lower than expected, warning that macroeconomic headwinds may persist throughout the year.

US large home building materials and home decor retailer Lowe's Companies, Inc. (LOW.US) stated that due to the growth in online sales during the spring season and the boost in demand from professional contractors, the company exceeded expectations in the first quarter earnings. However, due to challenges in the macro real estate market, the company maintains its full-year performance outlook. According to the financial report, Lowe's Companies, Inc. achieved a revenue of $23.1 billion in the first quarter, a 10.4% increase year-on-year, exceeding expectations by $2.2 billion; adjusted earnings per share were $3.03, better than expected. During the period, the company saw a 0.6% increase in same-store sales, which was lower than market expectations. In pre-market trading on Wednesday, Lowe's Companies, Inc. stock fell by 3.8%. As of Tuesday's close, the stock has fallen by 9.5% year-to-date. Lowe's Companies, Inc. reiterated its full-year performance forecast and stated that the macro real estate market environment remains challenging. Despite signs that the downturn in the US housing market may finally be coming to an end, US consumers are still facing financial pressure due to increased fuel costs caused by the situation in Iran. A market conditions index published by the National Association of Home Builders (NAHB) and Wells Fargo & Company showed a rebound in US home builders' confidence in May. As a competitor of Home Depot, Inc., Lowe's Companies, Inc. expects earnings per share for the full year to be between $12.25 and $12.75, in line with market expectations. Total revenue is expected to be between $92 billion and $94 billion, higher than the market's general expectation of $93.07 billion, representing a growth of about 7% to 9% from the previous year. Same-store sales are expected to remain flat or increase by 2% compared to the previous year. Industry research analyst Drew Reding pointed out that although recent acquisitions by Lowe's Companies, Inc. in the professional contractor field may compress profit margins in the short term, it should help drive long-term growth. He stated that professional customers account for approximately 30% of Lowe's Companies, Inc.'s total sales.