“Taking all of this into account, we are expecting Q2 sales towards the higher end of our full year guide.”

In context

“75x leverage target by the end of the year while maintaining our BBB+ credit rating. Finally, we are also updating our outlook for adjusted earnings per share in a range of $13.20 to $13.60. Keep in mind that our outlook for operating margin and diluted earnings per share are now adjusted to exclude the gain associated with the sale of our Canadian retail business that we recorded in the first quarter. To assist you with your modeling, I would like to spend a moment discussing our expectations for the second quarter. We are expecting an approximately $400 million headwind to sales due to the timing shift in our fiscal calendar. We also expect lumber deflation to pressure Q2 sales by approximately 150 basis points. Finally, we expect $250 million benefit to sales from the delayed spring. Taking all of this into account, we are expecting Q2 sales towards the higher end of our full year guide. We are also expecting adjusted operating margins slightly above prior year results, partly due to the impact of the shift in our fiscal calendar as well as the timing of several productivity initiatives that are already in flight. Turning to our capital allocation strategy. During the quarter, the company generated $1.7 billion in free cash flow. We repurchased 10.6 million shares for $2.1 billion and paid $633 million in dividends at $1.05 per share, returning $2.8 billion to our shareholders. Capital expenditures totaled $380 million in the quarter as we continue to invest in our strategic growth initiatives. We ended Q1 with $3 billion of cash and cash equivalents which includes proceeds from our $3 billion notes offering in March. We ended Q1 at 2.62x adjusted debt to EBITDA. Finally”