Lowe’s Companies Inc (NYSE:LOW) reported fourth-quarter FY23 sales of $18.60 billion, beating the analyst consensus estimate of $18.45 billion.
Comparable sales decreased 6.2% Y/Y due to slow DIY demand and unfavorable January winter weather, while Pro customer comparable sales remained flat flat Y/Y.
“This quarter we delivered strong operating profit and improved customer satisfaction, despite the continued pullback in DIY spending,” commented Marvin R. Ellison, Lowe’s chairman, president and CEO.
Gross profit fell to $6.03 billion from $7.26 billion a year ago, with a profit margin slightly expanding to 32.40% from 32.33% the prior year.
The operating margin was 9.07% versus 7.59% last year, and operating income for the quarter declined to $1.69 billion from $1.70 billion in fourth-quarter FY22.
EPS of $1.77 beat the consensus estimate of $1.68.
The company held $1.2 billion in cash and equivalents as of February 2, 2024.
As of February 2, 2024, Lowe’s operated 1,746 stores, representing 194.9 million square feet of retail selling space.
The company repurchased about 1.9 million shares for $404 million and paid $633 million in dividends in the quarter.
“We remain confident in the long-term strength of the home improvement market, and we are making the right investments in our Total Home strategy to take share,” Ellison added.
FY24 Outlook: Lowe’s expects revenue of $84 billion-$85 billion (against the Street view of $85.61 billion) and adjusted EPS of $12.00 – $12.30 vs. consensus of $12.95. The company expects comparable sales to decline about 2% to 3% in FY24.