First quarter sales increased 11.2% year-over-year to $19.7 billion at Lowe’s. The home-improvement retailer reported comparable sales increased 12.3% for the first quarter.
In addition to strong first quarter sales results, Lowe’s reported net earnings of $1.3 billion in the fiscal first quarter, compared to net earnings of $1.0 billion from the same period in 2019.
Lowe’s president and CEO Marvin Ellison said the retailer’s strong first quarter performance continued into May and reflects the “benefits of our retail fundamentals strategy, the improvement in our execution, and the resiliency of our home improvement business model.” Ellison said sales through Lowe’s online platform increased 80% in the quarter.
“In late February, we shifted our priorities in response to the COVID-19 pandemic, and immediately focused on how best to serve the needs of our communities during this unprecedented time,” Ellison said in a news release. “Our highest priority remains the health and safety of our associates and community, and we have demonstrated that commitment in the first quarter through an investment of $340 million, including support for healthcare workers and first responders.”
In response to the coronavirus (COVID-19), Lowe’s shortened store operating hours in early March to allow more time to clean stores and restock shelves. The retailer has also enforced operational changes to facilitate social distancing during normal business hours.
“I am tremendously proud of our associates and how they rose to meet the challenges of this global health crisis, and have continued to serve their communities, providing our customers with the essential products and services they need to keep their homes safe and functional, and their businesses running,” Ellison said.
Given the uncertain economic outlook, Lowe’s raised $4 billion in senior unsecured notes and increased the capacity of its revolving credit facilities by $770 million. The retailer repaid $500 million of fixed rate notes due April 15, 2020 and now has $6.0 billion of cash and cash equivalents as well as $3 billion in undrawn capacity on its revolving credit facilities, which the company said will be available for any unanticipated liquidity needs.
