Lowe's tumbles on lower outlook, mixed earnings

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Lowe's shares down after posting mixed first-quarter earnings

's shares plummeted 9% before the bell Wednesday after the company posted mixed fiscal first-quarter results and cut its forecast for the fiscal year.

"Our first quarter comparable sales performance is a clear indication that the consumer is healthy and our focus on retail fundamentals is gaining traction," Lowe's CEO and president Mark Ellison said in a company release. "However, the unanticipated impact of the convergence of cost pressure, significant transition in our merchandising organization, and ineffective legacy pricing tools and processes led to gross margin contraction in the quarter which impacted earnings.

For fiscal 2019, the company estimates total sales will rise 2%, while same-store sales are expected to increase 3%.

 

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