Lowe’s Reports Second Quarter 2023 Sales and Earnings Results

— Comparable Sales Decreased 1.6%; Diluted EPS of $4.56—

— Affirms Full Year 2023 Outlook —

Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $2.7 billion and diluted earnings per share (EPS) of $4.56 for the quarter ended Aug. 4, 2023, compared to diluted EPS of $4.67 in the second quarter of 2022.

Total sales for the quarter were $25.0 billion¹. Comparable sales decreased 1.6%², with strong spring recovery and  Pro and online sales growth, partially offsetting lumber deflation and lower DIY discretionary demand.

“Our investments in our Total Home strategy continued to drive growth across Pro and online this quarter. And we are excited by our recent launch of same-day delivery nationwide and the expansion of our rural merchandising framework to roughly 300 stores,” said Marvin R. Ellison, Lowe’s chairman, president and CEO.  “Our ability to reduce expenses while improving customer service is the result of excellent execution by our team, and we remain confident in the mid- to long-term outlook for the home improvement industry. In recognition of the contributions of our front-line associates, we are awarding over $100 million in discretionary and profit-sharing bonuses to them this quarter.  I would like to thank our front-line team for serving our customers and supporting our communities.”

Capital Allocation

With a disciplined focus on its leading capital allocation program, the company continues to generate long-term shareholder value. During the quarter, the company repurchased approximately 10.1 million shares for $2.2 billion, and it paid $624 million in dividends.

1 Total second quarter sales includes an approximately $335 million headwind related to a timing shift in our fiscal calendar as we cycle over a 53-week year.

2 Comparable sales are based on comparison to weeks 15-27 in 2022.

Lowe’s Business Outlook

The company is affirming its outlook for the operating results of full year 2023.

Adjusted operating income, adjusted operating margin, adjusted effective income tax and adjusted diluted EPS are non-GAAP financial measures that exclude the impact and timing of the gain associated with the 2022 sale of the Canadian retail business, recorded in the first quarter. The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items (which may be significant) without unreasonable effort, including timing of adjustments associated with the sale of our Canadian retail business.

Full Year 2023 Outlook – a 52-week Year (comparisons to full year 2022 – a 53-week year)

• Total sales of approximately $87 – $89 billion
• Comparable sales expected to be down -2% to -4% as compared to prior year
• Adjusted operating income as a percentage of sales (adjusted operating margin) of 13.4% to 13.6%
• Interest expense of approximately $1.5 billion
• Adjusted effective income tax rate of approximately 25%
• Adjusted diluted earnings per share of $13.20 to $13.60
• Capital expenditures of up to $2 billion

A conference call to discuss second quarter 2023 operating results is scheduled for today, Tuesday, Aug. 22, 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 Second 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.

For the complete press release, click here.

About Lowe’s

Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 17 million customer transactions a week in the U.S. With total fiscal year 2022 sales of over $97 billion, approximately $92 billion of sales were generated in the U.S., where 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.

Source: Lowe’s Companies, Inc.