Lumber deflation drives down Lowe’s sales

Lowe's Companies, Inc. had net sales of $22.3 billion for the first quarter of 2023, down from net sales of $23.7 billion in the first quarter of 2022. Comparable sales decreased 4.3%, driven by lumber deflation, unfavourable weather, and lower do-it-yourself (DIY) discretionary sales. Gross margin for the quarter was $7.5 billion and 33.7% of sales compared to $8 billion and 34% of sales in the year-ago period. The company had net earnings of $2.26 billion (10.1% of sales) for the first quarter compared to $2.33 billion (9.9% of sales) in the prior-year period. During the first quarter, the company recognized a gain associated with the 2022 sale of the Canadian retail business.