Lowe's Misses Expectations On Q1 Earnings, Blames Unseasonably Cool Weather

released an earnings report for the fiscal quarter ending March 31, 2013 early Wednesday morning. After failing to meet Wall Street analysts' expectations, the company's stock fell 3.5 percent in pre-market trade. After beating Wall Street's earnings estimates in three out of the past four quarters, Lowe's missed analysts' revenue expectations of $13.45 billion, reporting revenues that totaled just $13.09 billion. While the company's net earnings increased in comparison to last year's corresponding fiscal quarter, from $527 million or $0.43 earnings per share to $540 million or $0.49 earnings per share, reported earnings missed analysts' expectations of $0.51 earnings per share. Lowe's failure to meet expectations is particularly surprising when taking into account several facts: spring is normally the biggest sales season for home-retailers and improvements in the housing market have aided such businesses. In the company press release on Wednesday, Lowe's Chairman, President and CEO Robert A. Niblock pointed to abnormally cool weather conditions as the catalyst for a delayed spring-selling season and Lowe's failure to meet expectations. Niblock also noted, "While overall performance in the month of March was particularly soft, April improved significantly and we have maintained that positive momentum through the first few weeks of May." The company maintained its fiscal guidance for 2013, saying it now expects sales to increase 3.5 percent over the course of the year. Several significant factors could affect Lowe's moving forward: while the company plans to open ten new stores this year, over the past several quarters the company has focused on cost-cutting rather than outright growth through merchandising reviews/transformation, Lowe's direct competitor Home Depot beat analysts' expectations and raised guidance for the fiscal year, and the market improvements/Hurricane Sandy-sales could potentially benefit home-retailers in general. Lowe's closed Tuesday at $42.45.