Lowe’s Companies Inc shares are trading higher after the company reported better-than-expected first-quarter FY24 earnings.

The company reported a first-quarter FY24 sales decline of 4.4% year-on-year to $21.364 billion, beating the analyst consensus estimate of $21.123 billion.

Comparable sales decreased 4.1% due to a decline in DIY big ticket discretionary spending was partially offset by positive comparable sales in Pro and online.

EPS of $3.06 beat the analyst consensus estimate of $2.94.

Gross profit fell 5.8% Y/Y to $7.1 billion, with a profit margin contracting 49 basis points to 33.19%.

Operating margin was 12.42% versus 14.71% last year, and operating income for the quarter dropped 19.3% to $2.65 billion.

The company held $3.5 billion in cash and equivalents as of May 3. Operating cash flow for three months totaled $4.3 billion.

The company repurchased about 3.0 million shares for $743 million and paid $633 million in dividends in the quarter.

As of May 3, Lowe’s operated 1,746 stores, representing 194.9 million square feet of retail selling space.

“We are pleased with our start to spring, driven by strong execution and enhanced customer service,” said Marvin R. Ellison, Lowe’s chairman, president and CEO. “This quarter we rolled out our new DIY loyalty program nationally, expanded same-day delivery options and took market share in key categories.”

Outlook Affirmed: Lowe’s sees FY24 revenue of $84 billion-$85 billion, against the Street view of $84.434 billion.

Lowe’s expects FY24 EPS of $12.00-$12.30 against the consensus of $12.19. LOW expects FY24 comparable sales to decline 2% – 3%.

Price Action: LOW shares are trading higher by 2.54% at $235.00 in premarket at the last check Tuesday.