Consumer Discretionary

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

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

Lowe’s logged a stronger 4Q than Wall Street had been expecting, but its outlook for fiscal 2024 missed current analyst estimates. The home-improvement giant says it expects comparable sales, which strip out the impacts of store openings and closings, to fall 2% to 3% this year, which is a smaller decline than it saw in 2023 but steeper than the 1.5% drop analysts are currently projecting. Guidance for $84B to $85B in annual revenue is below current estimates for $85.36B, and its forecast for $12 to $12.30 a share in annual earnings comes in under current projections for $12.68 a share.

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