Shares of Lowe’s tumbled 10 per cent Wednesday after the home improvement retailer cut its outlook for the year after a weak first quarter.
The company cited rising costs and outdated pricing tools. Lowe’s recently acquired an analytics platform it says will modernize its pricing process and improve margins.
Lowe’s is trying to close the gap with rival Home Depot, which reported better than expected profits and sales numbers Monday. Shares of Lows Companies Inc. are up almost 30 per cent in the last 12 months, compared with a 2.5 per cent increase at Home Depot Inc.
The company earned of $1.05 billion in the quarter, or $1.31 per share. Adjusted earnings were $1.22 per share, far short of the per share earnings of $1.33 expected by Wall Street, according to a survey by Zacks Investment Research. The company had earnings of $988 million and diluted earnings per share of $1.19 in the first quarter last year.
Lowe’s revised its 2019 earnings per share outlook downward to a range of $5.45 to $5.65, from a previous range of $6 to $6.10.
Canadian Imperial Bank of Commerce missed profit estimates for the third straight quarter on Wednesday, as weak loan growth and higher loan loss provisions in retail banking more than offset gains in capital markets business.
Shares of the fifth largest Canadian lender fell 2.1 per cent in early trading.
Higher interest rates, which have been helping Canadian banks earn more money from loans, are now crimping borrowers’ ability to take loans, mirroring what lenders in the United States have witnessed over the last couple of quarters.
Shares in the other major banks, which report their own quarterly earnings later this week and next, were also lower in the wake of the CIBC report, down around 0.5 per cent.
Canopy Growth Corp. shares were up 4 per cent after saying Wednesday it would buy skincare company This Works for $73.8-million, adding beauty and sleep products to the Canadian weed producer’s portfolio of cannabis oil, hemp and medical capsules.
London-based This Works, set up in 2003 by a former beauty director of Vogue UK and yoga teacher, makes pillow sprays that help users sleep faster, moisturizers to reduce wrinkles, body oils and eye-care products, according to its website.
Canopy Growth said the acquisition fits with its strategy of expanding internationally and would help develop CBD-infused products and brands for the global beauty and wellness space.
Qualcomm Inc plunged 10.1 per cent, contributing the most to a 0.43 per cent drop in the S&P 500 technology sector. The Philadelphia Semiconductor index slipped 1.57 per cent.
A federal judge ruled that the chipmaker illegally suppressed competition in the market for smartphone chips by threatening to cut off supplies and extracting excessive licensing fees.