Lowe’s Reports Fourth Quarter 2022 Sales and Earnings Results

Lowe’s Companies, Inc. (“Lowe’s”) reported net earnings of $957 million and diluted earnings per share (EPS) of $1.58 for the quarter ended Feb. 3, 2023, compared to diluted EPS of $1.78 in the fourth quarter of 2021. Excluding the pre-tax transaction costs associated with the sale of our Canadian retail business, fourth quarter adjusted diluted EPS¹ increased 28% to $2.28 compared to the prior year.

Total sales for the fourth quarter were $22.4 billion compared to $21.3 billion in the fourth quarter of 2021. Comparable sales for the fourth quarter decreased 1.5%, and comparable sales for the U.S. home improvement business decreased 0.7%.

The fourth quarter of fiscal 2022 consisted of 14 weeks, compared with 13 weeks for the prior year. The 14^th week added approximately $1.4 billion in sales for the quarter and the year. Comparable sales are based on a comparable number of weeks from the prior year.

In the fourth quarter, the company awarded $220 million in discretionary and profit-sharing bonuses to associates, including $70 million for our assistant store managers and supply chain supervisors and $150 million for eligible hourly associates.

“We continue to make strides on our Total Home strategy, with 10% Pro growth in the U.S. and 5% increase in Lowes.com sales. In recognition of the front-line leaders and associates who delivered these results, we are pleased to award $220 million in discretionary and profit-sharing bonuses,” commented Marvin R. Ellison, Lowe’s chairman, president and CEO. “I am confident we are making the right investments – in our associates and in our business – to drive long-term growth. We also continue to improve operating margin, demonstrating our ongoing focus on driving productivity across the company.”

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 million shares for $2.0 billion, and it repurchased 71 million shares for $14.1 billion for the year. Total share repurchases in 2022 were $1.1 billion higher than anticipated, reflecting better-than-expected operating performance and the company’s commitment to return excess capital to shareholders.

The company also paid $643 million in dividends in the fourth quarter and $2.4 billion in dividends for the year. In total, the company returned $16.5 billion to shareholders through share repurchases and dividends in 2022.

Lowe’s Business Outlook

The company is introducing its outlook for fiscal 2023.

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

• Total sales of approximately $88 – $90 billion
• Comparable sales expected to be flat to down -2% as compared to prior year
• Operating income as a percentage of sales (operating margin) of 13.6% to 13.8%
• Effective income tax rate of approximately 25%
• Diluted earnings per share of $13.60 to $14.00
• Capital expenditures of up to $2 billion

A conference call to discuss fourth quarter 2022 operating results is scheduled for today, Wednesday, March 1, 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 2022 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 full fourth quarter results, click here.

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.

About Lowe’s Companies

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.