LOWE’S REPORTS FOURTH QUARTER 2023 SALES AND EARNINGS RESULTS
PR Newswire
MOORESVILLE, N.C., Feb. 27, 2024
— Comparable Sales Decreased 6.2%; Diluted EPS of $1.77–
— Provides Full Year 2024 Outlook —
MOORESVILLE, N.C., Feb. 27, 2024 /PRNewswire/ — Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $1.0 billion and diluted earnings per share (EPS) of $1.77 for the quarter ended Feb. 2, 2024, compared to diluted EPS of $1.58 in the fourth quarter of 2022, which included pre-tax transaction costs of $441 million associated with the sale of our Canadian retail business. Excluding the transaction costs in the prior year, fourth quarter 2022 adjusted diluted EPS(1) was $2.28.
Total sales for the quarter were $18.6 billion,(2) compared to $22.4 billion in the prior year quarter. Prior-year quarterly sales included approximately $1.4 billion from the additional 53(rd) week, as well as $958 million generated from our Canadian retail business.
Comparable sales(3) for the quarter decreased 6.2% due to a slowdown in DIY demand and unfavorable January winter weather, while Pro customer comparable sales were flat for the quarter.
“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. “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. We are also pleased to award $140 million in discretionary bonuses to our frontline associates in recognition of their exceptional customer service in 2023.”
As of Feb. 2, 2024, Lowe’s operated 1,746 stores representing 194.9 million square feet of retail selling space.
Capital Allocation
The company remains committed to a best-in-class capital allocation strategy focused on driving long-term, sustainable shareholder value. During the quarter, the company repurchased approximately 1.9 million shares for $404 million, and it repurchased 29.9 million shares for $6.3 billion for the year.
The company also paid $633 million in dividends in the fourth quarter and $2.5 billion in dividends for the year. In total, the company returned $8.9 billion to shareholders through share repurchases and dividends in fiscal 2023.
(1) Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures Reconciliation" section of this release for additional information, as well as reconciliations between the Company's GAAP and non-GAAP financial results. (2) Total fourth quarter sales includes an approximately $200 million headwind related to a timing shift in our fiscal calendar as we cycle over a 53-week year. (3) Comparable sales are based on comparison to weeks 41-53 in 2022. Lowe's Business Outlook -----------------------
The company is introducing its outlook for full year 2024, which reflects near-term macroeconomic uncertainty.
Full Year 2024 Outlook
-- Total sales of $84 to $85 billion
-- Comparable sales expected to be down -2 to -3% as compared to prior year
-- Operating income as a percentage of sales (operating margin) of 12.6% to
12.7%
-- Interest expense of approximately $1.4 billion
-- Effective income tax rate of approximately 25%
-- Diluted earnings per share of approximately $12.00 to $12.30
-- Capital expenditures of approximately $2 billion
A conference call to discuss fourth quarter 2023 operating results is scheduled for today, Tuesday, Feb. 27, at 9 a.m. ET. The conference call will be available by webcast and can be accessed by visiting Lowe’s website at ir.lowes.com and clicking on Lowe’s Fourth Quarter 2023 Earnings Conference Call Webcast. Supplemental slides will be available approximately 15 minutes prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.
Lowe's Companies, Inc. ----------------------
Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE(R) 50 home improvement company serving approximately 16 million customer transactions a week in the United States. With total fiscal year 2023 sales of more than $86 billion, Lowe’s operates over 1,700 home improvement stores and employs approximately 300,000 associates. Based in Mooresville, N.C., Lowe’s supports the communities it serves through programs focused on creating safe, affordable housing and helping to develop the next generation of skilled trade experts. For more information, visit Lowes.com.
Disclosure Regarding Forward-Looking Statements -----------------------------------------------
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believe”, “expect”, “anticipate”, “plan”, “desire”, “project”, “estimate”, “intend”, “will”, “should”, “could”, “would”, “may”, “strategy”, “potential”, “opportunity”, “outlook”, “scenario”, “guidance”, and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental, social, and governance matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, share repurchases, Lowe’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties, and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.
A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe’s and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.
Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in “Item 1A – Risk Factors” in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.
LOW-IR
Contacts: Shareholder/Analyst Inquiries: Media Inquiries:
Kate Pearlman Steve Salazar
704-775-3856 steve.j.salazar@lowes.com
kate.pearlman@lowes.com
Lowe's Companies, Inc.
Consolidated Statements of Current Earnings and Accumulated Deficit (Unaudited)
In Millions, Except Per Share and Percentage Data
Three Months Ended Fiscal Year Ended
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February 2, 2024 February 3, 2023 February 2, 2024 February 3, 2023
------------------- ------------------- ------------------- -------------------
Current
Earnings Amount % Sales Amount % Sales Amount % Sales Amount % Sales
--------------- ---------- ------- ---------- ------- ---------- ------- ---------- -------
Net sales $ 18,602 100.00 $ 22,445 100.00 $ 86,377 100.00 $ 97,059 100.00
Cost of sales 12,576 67.60 15,189 67.67 57,533 66.61 64,802 66.77
Gross margin 6,026 32.40 7,256 32.33 28,844 33.39 32,257 33.23
Expenses:
Selling,
general and
administrative 3,897 20.95 5,131 22.86 15,570 18.02 20,332 20.94
Depreciation
and
amortization 442 2.38 421 1.88 1,717 1.99 1,766 1.82
Operating
income 1,687 9.07 1,704 7.59 11,557 13.38 10,159 10.47
Interest -- net 348 1.87 322 1.43 1,382 1.60 1,123 1.16
Pre-tax
earnings 1,339 7.20 1,382 6.16 10,175 11.78 9,036 9.31
Income tax
provision 319 1.72 425 1.90 2,449 2.83 2,599 2.68
Net earnings $ 1,020 5.48 $ 957 4.26 $ 7,726 8.95 $ 6,437 6.63
Weighted
average common
shares
outstanding --
basic 574 603 582 629
Basic earnings
per common
share (1) $ 1.77 $ 1.58 $ 13.23 $ 10.20
Weighted
average common