UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 3, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 1-7898 LOWE’S COMPANIES, INC. (Exact name of registrant as specified in its charter) North Carolina 56-0578072 (State or ...

Lowe's (LOW) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.Over the past month, shares of this home improvement retailer have returned -5.5%, compared to the Zacks S&P 500 composite's +4.3% change. During this period, the Zacks Building Products - Retail industry, which Lowe's falls in, has lost 3.7%. The key question now is: What could be the stock's future direction?Although media ...

This huge retailer might be on your investing radar right now.Lowe's (LOW 0.07%) just reported revenue and earnings for its fiscal 2024 first quarter (ended May 3) that exceeded Wall Street estimates. However, shares were down about 6% two days following that announcement. Investors clearly weren't pleased.This top retail stock recently traded 17% below its peak price. It might be a good business to take a closer look at adding to your portfolio. But before doing so, learn these three must-know facts about ...

UPDATE—May 21, 2024: This article has been updated to reflect more recent share price information.Key TakeawaysLowe's reported first-quarter earnings that beat analysts' estimates, despite declining from the year-ago period amid a pullback in home-improvement spending. The company said growth in digital sales and market share among professional contractors helped partially offset a continued slowdown in sales of big-ticket items.Lowe's affirmed its full year-guidance, projecting revenue and diluted earning ...

Financial Data and Key Metrics - Q1 2024 sales were $21.4 billion, with comparable sales down 4.1% YoY [7] - Comparable transactions declined 3.1%, and average ticket was down 1% [33] - Gross margin was 33.2%, down 49 basis points YoY, driven by supply chain investments and promotions [34] - Operating margin declined 201 basis points to 12.4% [34] - Inventory ended the quarter at $18.2 billion, down $1.3 billion YoY [35] - Free cash flow was $3.9 billion, with $633 million paid in dividends and $743 million in share repurchases [35] Business Line Performance - Pro sales showed positive growth in Q1, driven by investments in service levels and expanded brand portfolio, including Klein Tools [8][9] - Online sales grew approximately 1%, with improved conversion rates offsetting pressure in big-ticket DIY categories [10] - Lawn and garden categories saw positive comp sales, driven by smaller ticket projects and the introduction of Toro products [17][18] - Building materials and repair/maintenance categories performed well, with strength in roofing, concrete, and water heaters [19][20] - DIY big-ticket categories like flooring, kitchens, and appliances continued to face pressure [21][22] Market Performance - The company saw strong performance in the West region, with rural stores outperforming other geographic locations [98][100] - Pro sales outperformed across all regions, while DIY big-ticket discretionary pressure was broad-based [99] Strategy and Industry Competition - The company is focused on its Total Home strategy, aiming to capture market share in the $500 billion Pro market, particularly with small- to medium-sized Pros [9][88] - Investments in digital transformation, including same-day delivery partnerships and the MyLowe's Rewards loyalty program, are key to enhancing customer experience [10][11][12] - The company is leveraging private brands like Sta-Green and Klein Tools to drive higher margins and customer loyalty [17][24] - Lowe's is positioning itself for market share growth when the home improvement market recovers, with ongoing investments in supply chain, IT infrastructure, and store operations [15][59] Management Commentary on Macro Environment - The macro environment remains challenging, with uncertainty around interest rates, inflation, and consumer spending on discretionary services [14] - The company expects the home improvement market to recover in the medium to long term, supported by core demand drivers [14][59] - Management remains confident in the company's ability to navigate the current environment and capitalize on future growth opportunities [15][59] Other Important Information - The company launched the MyLowe's Rewards loyalty program nationally, with early positive customer adoption [11][12] - Lowe's partnered with MLS Club Inter Miami CF and Copa America 2024 to expand its reach to soccer fans in the U.S. [13] - The company closed stores on Easter for the fifth consecutive year, supporting associate well-being [27] Q&A Summary Question: Gross margin drivers and phasing [41] - Gross margin is expected to be flat for the year, with improvements weighted towards the second half due to PPI initiatives and lower transportation costs [42][43] - Vendor callbacks are progressing, with benefits expected to flow through inventory over the next three quarters [43] Question: Big-ticket trends and recovery path [44] - Big-ticket sales (over $500) were down 7.6%, driven by DIY discretionary spending pressure, particularly in categories like appliances, kitchens, and flooring [45][46] - Pro growth is helping to offset some of the big-ticket pressure [46] Question: ROI of front-end transformation [48] - The front-end transformation is one-third complete, with improvements in customer satisfaction, associate engagement, and financial metrics like sales and payroll costs [49][50] Question: Appliance promotional strategy [51] - The company has shifted its appliance strategy to focus on single-item purchases, with innovation driving customer interest [52][53] Question: Macro outlook and comp cadence [55] - The company expects comps to improve in the second half due to easier comparisons, not necessarily a macro recovery [56][57] - Management is focused on positioning the company for long-term growth, with significant investments in supply chain, IT, and store operations [58][59] Question: Trade-off between sales and gross margin [63] - The company is focused on meeting customer demand for value, with confidence in recovering gross margin pressure in the second half [64][65] Question: DIY loyalty program impact [67] - The MyLowe's Rewards program is in early stages, with a focus on enrollment and customer engagement [68][69] - The program is expected to drive incremental trips and spending over time [69] Question: Regional trends [97] - The West region outperformed, with strong Pro sales across all regions and ongoing pressure in DIY big-ticket categories [98][99] - Rural stores continue to be the best-performing subset [100] Question: Big-ticket performance in guidance [101] - The company expects similar absolute performance in big-ticket categories, with comp improvements driven by easier comparisons [102]

The home improvement sector is getting its affairs in order while eyeing a macro improvement.That’s the news from home improvement retailer Lowe’s, which cited softer demand and ongoing headwinds — including a slowdown in home sales, higher interest rates and a pullback in consumer spending — during a first-quarter 2024 earnings call Tuesday (May 21).Still, the company beat Wall Street’s expectations for the quarter and stressed to investors that it was making investments into digital and omnichannel opport ...

Lowe’s Companies, Inc. (LOW) came up with first-quarter fiscal 2024 results, wherein the top and bottom lines beat the respective Zacks Consensus Estimate. However, the company experienced a year-over-year decline in both metrics. The reduction in Do-It-Yourself (DIY) big-ticket discretionary spending did hurt the company’s performance to an extent. However, favorable comparable sales in Pro and online helped mitigate the impact.This Mooresville, NC-based company implemented a new DIY loyalty program on a n ...

Key PointsLowe's had a decent quarter, outperforming expectations and reaffirming guidance. Cash flow remains solid and allows for repurchases and dividends while improving the balance sheet. Analysts are leading this market to a new high that may be reached before the end of the year. 5 stocks we like better than Lowe's CompaniesShares of Lowe’s Companies NYSE: LOW corrected to critical support levels ahead of the Q1 release, setting up a buying opportunity confirmed in its aftermath. The results are not s ...

Key TakeawaysLowe's shares rose in pre-market trading Tuesday after the retailer reported first-quarter earnings that beat analysts' estimates, despite declining from the year-ago period amid a pullback in home-improvement spending. The company said growth in digital sales and market share among professional contractors helped partially offset a continued slowdown in sales of big-ticket items.Lowe's affirmed its full year-guidance, projecting revenue and diluted earnings per share (EPS) roughly in line with ...

Exhibit 99.1 May 21, 2024 For 6:00 a.m. ET Release LOWE’S REPORTS FIRST QUARTER 2024 SALES AND EARNINGS RESULTS — Comparable Sales Decreased 4.1%; Diluted EPS of $3.06 — — Affirms Full Year 2024 Outlook — MOORESVILLE, N.C., May 21, 2024 – Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $1.8 billion and diluted earnings per share (EPS) of $3.06 for the quarter ended May 3, 2024, compared to diluted EPS of $3.77 in the first quarter of 2023, which included a gain associated with the 2022 sal ...