CLAIM #38047 · Lowe's Companies Inc (LOW) · 2023Q1 earnings call · May 23, 2023 · due Dec 31, 2023
“we're not anticipating any meaningful deflationary pressure as we move through the year.”
Brandon Sink · CFO
In context
“around the unit volume increase that you saw seem to be quite strong. So maybe just tie those 2 together. Brandon Sink: Seth, I can take that as well. So when we look at the makeup in terms of ticket and transaction, as you mentioned, we're seeing the pace and cost increases. Those have slowed pretty dramatically here over the course of the last couple of quarters. We are still expecting a modest level of product inflation as we look out at '23. Most of that is wrapped from pricing actions that we've taken in the second half of last year. We are -- ex lumber average ticket is actually up in most categories when we look at Q1. The lumber deflationary pressure is expected to continue to impact average ticket in Q2, but not as significant as Q1. And then when we look outside of commodities, we're not anticipating any meaningful deflationary pressure as we move through the year. Mainly the pressure is going to be coming from what Marvin mentioned, the pullback in DIY discretionary which is going to put pressure on ticket and that's especially true in the larger ticket bucket. So all in, the makeup of the comp and the outlook assumes more pressure overall on transactions, and we expect the average ticket number to hold up. Operator: Our next question is coming from the line of Kate McShane with Goldman Sachs. Katharine McShane: Is there a view, just given that you do cater to the smaller and midsized Pro, just that you can hold up maybe a little bit better given the industry backdrop. And with regards to market share, it sounds like there were some wins there during the first quarter. Have your share assumptions changed at all based on that for the year? Marvi”
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SEC filings for LOW ↗ · Claim quote is verbatim from the 2023Q1 earnings call.