...A. Highlights: Over the past three years, grew Co.'s business $47b or 43%. 1. After this period of unprecedented growth, expects the demand would moderate in FY23, which Co.'s 1Q results were flat. a. 2. Sales, $37.3b, down 4.2% from 1Q22. Comp sales declined 4.5% from 1Q22 and US stores had negative comps of 4.6%. a. 3. Diluted EPS, $3.82 vs. $4.09 in 1Q22. 4. Co.'s sales for the qtr. were below its expectations, primarily driven by lumber deflation and unfavorable weather, particularly in Western Division as extreme weather events in California disproportionately impacted results. Weather was favorable, Co. saw strength in key spring-related categories, such as live goods and other garden related categories. a. b. As Co. looks beyond weather in lumber deflation, its underlying performance in qtr. was mixed. Saw more pressure across the business vs. what Co. observed when it reported 4Q results a few months ago. i. c. While there was relative strength in project-related categories, like...
