LOWE’S ANNOUNCES SECOND QUARTER 2023 SALES AND PROFITS
Earnings Highlights
Lowe’s Companies, Inc. (NYSE: LOW) recently released its financial results for the second quarter ended August 4, 2023. The company reported net earnings of $2.7 billion, translating to diluted earnings per share (EPS) of $4.56. This compares to the diluted EPS of $4.67 reported for the second quarter of 2022.
Sales Performance
During the quarter, Lowe’s achieved quarterly sales totaling $25 billion. The company’s robust spring recovery and notable growth in online and professional sales served to partially counteract the impact of lumber deflation and reduced do-it-yourself discretionary demand. Consequently, comparable sales experienced a modest decline of 1.6%.
Total Home Strategy and Growth Initiatives
Lowe’s continued its investment in the Total Home strategy, which contributed to growth across the Professional and online segments. The company also celebrated the national rollout of same-day delivery and the expansion of its rural merchandising framework to around 300 stores. Marvin R. Ellison, Lowe’s Chairman, President, and CEO, expressed enthusiasm for these developments, attributing the ability to streamline expenses while enhancing customer service to the team’s exceptional execution.
Recognition of Front-Line Employees
In recognition of the outstanding contributions of front-line employees to supporting communities and serving customers, Lowe’s announced its plan to award over $100 million in discretionary and profit-sharing incentives to these employees during the quarter.
Shareholder Value and Capital Allocation
Lowe’s reiterated its commitment to generating long-term shareholder value through a disciplined approach to its capital allocation program. The company reported repurchasing approximately 10.1 million shares for $2.2 billion and distributing dividends amounting to $624 million during the quarter.
2023 Operating Prognosis
Lowe’s provided its outlook for the full year 2023, with expectations including:
- Total sales ranging between $87 billion and $89 billion
- Anticipated comparable sales decrease between -2% and -4% compared to the previous year
- Adjusted operating income as a percentage of sales (adjusted operating margin) between 13.4% and 13.4%
- Interest expenses of approximately $1.5 billion
- Effective income tax rate of around 25% after adjustments
- Adjusted diluted earnings per share within the range of $13.20 to $13.60
- Planned capital expenditures of up to $2 billion
Conference Call and Webcast
To discuss the second quarter 2023 operating results, Lowe’s scheduled a conference call on Tuesday, August 22, at 9 a.m. ET. The call will be webcast and accessible via the company’s investor relations website, ir.lowes.com. Supplementary slides will be available approximately 15 minutes prior to the call’s commencement, and an archived version of the call will be accessible on the same website.
About Lowe’s Companies, Inc.
Lowe’s Companies, Inc. (NYSE: LOW) is a Fortune® 50 home improvement retailer serving approximately 17 million customers weekly in the United States. With a total sales figure surpassing $97 billion for fiscal year 2022, Lowe’s primarily generated around $92 billion in the United States, where it operates over 1,700 home improvement stores and employs about 300,000 individuals. Headquartered in Mooresville, North Carolina, Lowe’s engages in initiatives such as promoting affordable housing and training skilled trade professionals.
Forward-Looking Statements
This release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements use words such as “believe,” “expect,” “anticipate,” “plan,” and others to express expectations and assumptions about future financial and operational results, business outlook, strategic initiatives, and more. However, these statements inherently carry risks and uncertainties that could lead to outcomes differing from expressed or implied expectations. Factors that could impact these forward-looking statements include economic conditions, market volatility, interest rates, trade policies, and other variables.
Cautionary Note Regarding Forward-Looking Statements
Investors and other stakeholders are advised to consider the risks and uncertainties associated with the forward-looking statements in this release. These factors are detailed in Lowe’s most recent Annual Report on Form 10-K and in subsequent quarterly reports on Form 10-Q or other filings with the SEC. The company does not undertake an obligation to update forward-looking statements, except as required by law.
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