During its fiscal 2023 first quarter (ended May 5), Lowe's (LOW 1.85%) generated revenue of $22.3 billion (down 6% year over year) and adjusted diluted earnings per share of $3.67 (up 5%). While these results were a bit of a mixed bag, they exceeded Wall Street estimates. And the stock was up following the news. 

Zooming out, shares have been a winning investment, as they climbed 115% over the past five years. But investors should be aware of the company's management team cutting its outlook for the current fiscal year. Many retailers, including Lowe's, are faced with an uncertain economic backdrop. 

Despite some near-term headwinds, investors might want to consider buying the stock anyway for a long-term-focused portfolio. 

Recapping the latest fiscal quarter 

As inflationary pressures hurt consumers' spending power and higher mortgage rates result in a cooler housing market, it's not too much of a surprise that Lowe's posted a same-store sales decline of 4.3% in the most recent quarter. Transaction counts were down 4%, and the sales of big-ticket items priced greater than $500 dropped 7.7%. 

Because about 75% of Lowe's revenue comes from do-it-yourself (DIY) customers, the business is more susceptible to the strength of the individual consumer.

"DIY sales were pressured by delayed spring and lower-than-expected discretionary demand," CEO Marvin Ellison said on the Q1 2023 earnings call. 

By beating estimates last quarter, though, Lowe's proved that Wall Street was a bit too pessimistic on the business and its fundamentals. That can translate to good returns for investors, but what really matters is what the future holds. By lowering fiscal 2023 guidance, management has signaled that it was too optimistic in the near term. 

Sales for the current fiscal year are projected to total $87 billion to $89 billion, down from prior guidance of $88 billion to $90 billion. The outlook for same-store sales and operating margin was also lowered. Again, the leadership team is seeing weaker discretionary spending and a reduced inclination to tackle expensive renovation projects. Bigger rival Home Depot called out the same trends. 

There are reasons to like Lowe's 

There's no doubt that the near term remains uncertain not just for Lowe's, but for every business. So, it's not shocking to see the downgraded guidance given what's going on with the economy. Consumers are hurting, and the housing market is softening. 

But there are still reasons to like the business. In fact, the bullish case for Lowe's definitely holds some merit. 

There is a key secular trend working to the benefit of Lowe's, and that's the aging housing stock. According to the National Association of Home Builders (NAHB), the median age of a home in the U.S. is 39 years old. "The age of the housing stock is an important remodeling market indicator," the NAHB's website says. 

Lowe's is a clear beneficiary of this, as older homes will result in greater demand for the tools, supplies, and expertise that Lowe's provides through its more than 1,700 stores. Given enough time, this trend should outweigh the weaker demand that the home improvement business has seen lately. 

Lowe's has also worked to bolster its presence with professionals, who currently represent about 25% of overall revenue.

The company reported positive comparable pro sales during the latest quarter, on top of a 22% gain in the year-ago period. That's solid momentum. Lowe's continues to enhance its rewards program for professionals, which should help to drive loyalty from this valuable customer group. 

What's more, Lowe's stellar profitability allowed it to return cash to shareholders. The company has paid dividends since 1961, and it has raised that disbursement for more than 25 consecutive years. The current yield of 2% is a nice boost for income-seeking investors. 

If your time horizon is greater than the next 12 months, then it might be worthwhile to take a closer look at this stock.