The shares of Lowe’s Companies Inc. fell Tuesday after the home improvement retailer exceeded its fiscal first quarter profit and sales forecasts but cut its outlook for the full year, citing a lower demand for non-essential items.

The net income for the three months ending May 5, was $2.26billion, or $3.77 per share. This compares to $2.33billion, or $3.51 per share, during the same period last year. The net income decreased while the earnings per share rose as the number shares outstanding to calculate EPS fell 9.8% to 597 millions.

FactSet’s consensus was $3.44. However, excluding nonrecurring items such as a gain on asset sales, the adjusted EPS came in at $3.67.

Total sales fell 5.5%, to $22.35 Billion, exceeding the FactSet consensus estimate of $21.60 Billion. However, the same-store sales decreased by 4.3%, which was below the expected 3.4%.

Gross margin fell from 34.0% to 33.7%, and cost of sales was down by 5.1%. As of May 5, the value of merchandise inventories was down 3.5% compared to a year earlier, at $19.52 billion. Gross margin also decreased from 34.0% to 33.7%.

The stock Low, -1.51% lost 1.0% before the opening, but pared previous premarket losses as high as 3.4%.

Lowe’s reported that it spent $2.1 Billion to repurchase 10,6 Million shares, and paid $633 MILLION in dividends.

Marvin Ellison, Chief Executive Officer of the company, said: “We’re pleased with our performance despite a record lumber deflation as well as unfavorable weather in spring.” “While we achieved positive comparable sales for Pro and online in the first quarter, our outlook for full year has been updated to reflect lower than expected consumer demand for discretionary items.”

The company has lowered the guidance for fiscal 2023. It now expects adjusted EPS of $13.20 to $13.60, down from $13.60 – $14.00. Sales are expected to be $87 billion – $89 billion instead of $88 billion – $90 billion. The company revised its outlook for same-store revenue from flat to 2% down to a 2% decrease to a 4% decline.

Wall Street’s estimates for the full year were also within the lower guidance ranges. The FactSet consensus on EPS was at $13.56. Sales were estimated at $88.36billion and same-store sales decreased by 2.2%.

Lowe’s announced its results less than one week after Home Depot Inc. HD, -0.08% posted a profit that was higher than expected — but sales fell short of expectations. Home Depot also reduced its outlook for the full year.

The S&P 500 Index SPX +0.02% is up 9.2% and Home Depot shares are down 8.0%.