Lowe’s Companies saw first-quarter revenue dip 4.4 per cent to $21.36 billion, with comparable sales declining 4.1 per cent due to weaker DIY big ticket discretionary spending.

During the quarter, the company’s net earnings plunged 22.3 per cent to $1.76 billion, as last year’s results included a gain from the sale of its Canadian retail business.

“This quarter we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories,” said Marvin Ellison, Lowe’s chairman, president and CEO. “We continue to gain momentum with our Total Home strategy, reflected in our growth in Pro and online.”

Neil Saunder, GlobalData MD, cast doubts on the business’s performance amid a weak housing market due to high interest rates.

“From our data, Lowe’s is a little more reliant on movers spending on home improvement than rival Home Depot – especially at the softer end of the market for projects like painting and general decoration,” said Saunders.

“While the housing market will not collapse any time soon, nor will it pick up substantially this year as serious interest rate cuts look increasingly unlikely. This means pressure on Lowe’s sales line will continue.”

Saunders added that while Lowe’s remains profitable, it is also becoming less productive.

For the full year, Lowe’s forecasts total sales of $84 billion to $85 billion and comparable sales to decline 2 per cent to 3 per cent.