Core Insights - Lowe's is strategically investing in digital and in-store offerings to enhance value and convenience for Pro customers, driving growth amid a challenging macroeconomic landscape [1] - The company reported high single-digit growth in the Pro segment and a 9.5% increase in online sales during the fourth quarter, with a 0.2% rise in comparable store sales, marking the first positive increase in two years [2] Pro Customer Momentum and Loyalty Programs - Lowe's is gaining momentum with Pro customers and has updated its MVPs Pro Rewards & Partnership Program to MyLowe's Pro Rewards, allowing members to earn points on purchases redeemable for rewards [3] - The DIY loyalty program has 30 million members, with members outspending non-members by 50% [4] Driving Growth Through Productivity Improvement - Lowe's future growth strategy includes Perpetual Productivity Improvement (PPI) initiatives, which now extend to supply chain, merchandising, HR, IT, and online operations, focusing on store front-end transformation [5] Targeting Millennials and Strengthening Digital Experience - Millennials are leading in home improvement retail, with 25% having purchased building materials or tools in the past 30 days, compared to 19% of consumers overall [7] - Lowe's launched a Digital Home Platform for MyLowe's Rewards members, providing personalized home maintenance management and product recommendations [8] Looking Ahead - The company is prepared to outperform the market in various macro scenarios, leveraging data from loyalty programs to drive engagement and offering exclusive deals [10] - The normalization of the home improvement market remains uncertain, with a focus on tracking discretionary big-ticket items for DIY and the home installation business [11]

Core Insights - Lowe's Companies, Inc. reported fourth-quarter fiscal 2024 results with both net sales and earnings exceeding the Zacks Consensus Estimate, marking an improvement in earnings year over year despite a slight decline in net sales [1][2][3] Financial Performance - Adjusted quarterly earnings were $1.93 per share, surpassing the Zacks Consensus Estimate of $1.83 and improving from $1.77 in the same period last year [2] - Net sales reached $18,553 million, exceeding the Zacks Consensus Estimate of $18,346 million but reflecting a 0.3% year-over-year decline [3] - Comparable sales increased by 0.2%, a recovery from the 1.1% decline in the previous quarter, driven by high-single-digit growth in Pro and online sales, strong holiday performance, and post-hurricane rebuilding efforts [4] Profitability Metrics - Gross profit rose by 1.2% year over year to $6,097 million, with gross margin expanding by 50 basis points to 32.9% [5] - Operating income increased by 8.5% to $1,830 million, and operating margin expanded by 80 basis points to 9.9% [5] Financial Health - The company ended the quarter with cash and cash equivalents of $1,761 million and long-term debt of $32,901 million [6] - For fiscal 2024, Lowe's generated cash flow from operations of $9,625 million and executed a buyback of approximately 5.5 million shares, totaling $1.4 billion [6] Fiscal 2025 Outlook - Lowe's anticipates total sales between $83.5 billion and $84.5 billion for fiscal 2025, with comparable sales expected to be flat to up 1% [7] - Adjusted earnings per share are projected in the range of $12.15 to $12.40, with capital expenditures estimated at approximately $2.5 billion [8] Stock Performance - Lowe's shares have increased by 1.3% over the past six months, compared to the industry's growth of 3.2% [9]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported sales of $18.6 billion with positive comparable sales growth of 0.2% [6][55] - For the full fiscal year 2024, total sales reached $83.7 billion, with an adjusted operating margin of 12.3% and adjusted earnings per share of $11.99 [6][55] - The gross margin for Q4 was 32.9%, an increase of 46 basis points year-over-year, driven by productivity initiatives [57] - Adjusted SG&A expenses were 21% of sales, reflecting an 8 basis point deleverage compared to the previous year [57] - The company generated $7.7 billion in free cash flow and returned $6.5 billion to shareholders through share repurchases and dividends in 2024 [58] Business Line Data and Key Metrics Changes - The pro segment experienced high single-digit comparable sales growth for the second consecutive quarter, driven by the TransformPro offering and improved service levels [8][22] - Online sales grew by 9.5% in Q4, with significant sales during Black Friday and Cyber Monday [9][10] - The DIY segment faced pressure, particularly in larger ticket discretionary spending, with comparable transactions declining by 1.3% [55][56] Market Data and Key Metrics Changes - The company noted a cautious consumer environment impacting DIY discretionary spending, especially for larger projects [7][13] - The macro environment remains challenging, with high mortgage rates leading to a lock-in effect and the lowest pace of existing home sales in nearly 30 years [13][14] - Despite these challenges, key drivers such as home price appreciation and disposable income growth are expected to sustain long-term demand [14][15] Company Strategy and Development Direction - The company is focused on a total home strategy, which includes driving pro penetration, accelerating online sales, and expanding home services [16][17] - Investments are being made in technology-driven productivity projects and key growth initiatives, with a disciplined focus on productivity [59][63] - The company plans to open five to ten new stores in 2025 as part of its growth strategy [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium to long-term outlook despite near-term market uncertainties [14][62] - The company anticipates a flat home improvement market in 2025, with pro outpacing DIY due to repair and maintenance needs [62][63] - Management highlighted the importance of agility and strategic planning to outperform the market under various economic scenarios [17][90] Other Important Information - The company awarded $80 million in discretionary bonuses to frontline associates, reflecting appreciation for their commitment [20][51] - Lowe's donated $2 million for relief efforts in communities affected by wildfires in Southern California [19][38] Q&A Session Summary Question: Discussion on Q4 strength and context - Management acknowledged the challenging macro backdrop but expressed satisfaction with execution and positive comps despite market difficulties [72][74] Question: Gross margin expectations and vendor clawbacks - Management indicated that gross margin is expected to remain flat for the year, with PPI initiatives offsetting pressures from investments [78][80] Question: Sales guidance and market share - Management confirmed that the sales guidance remains consistent with previous expectations, factoring in weather impacts and market conditions [88][90] Question: Hurricane rebuild outlook - Management adopted a conservative approach regarding the financial benefits from hurricane rebuilds, considering timing of insurance proceeds [100] Question: Pro segment engagement and performance - Management reported positive growth across pro-centric categories, driven by improved service levels and inventory availability [107] Question: Transaction versus ticket growth expectations - Management expects slight ticket growth driven by pro strength, while DIY traffic pressures are anticipated to persist [113][115] Question: Large ticket remodeling categories performance - Management acknowledged that DIY discretionary big ticket categories are under pressure, impacting overall revenue [130][132] Question: Incremental activity to drive DIY business - Management stated there are no plans for significant changes in promotional cadence for DIY, focusing instead on leveraging the DIY loyalty program [135][137]

For the quarter ended January 2025, Lowe's (LOW) reported revenue of $18.55 billion, down 0.3% over the same period last year. EPS came in at $1.93, compared to $1.77 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $18.35 billion, representing a surprise of +1.13%. The company delivered an EPS surprise of +5.46%, with the consensus EPS estimate being $1.83.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Core Insights - Lowe's Companies reported strong fourth-quarter 2024 earnings, exceeding analysts' expectations with adjusted diluted EPS of $1.93 compared to the forecast of $1.84 [2][4] - Revenue remained flat at $18.6 billion, slightly above the expected $18.3 billion, indicating resilience despite challenging economic conditions [2][4] Financial Performance - Adjusted diluted EPS increased by 9.0% year-over-year from $1.77 in Q4 2023 to $1.93 in Q4 2024 [4] - Revenue was $18.553 billion, a slight decrease of 0.2% from $18.602 billion in Q4 2023 [4] - Net earnings rose to $1.125 billion, reflecting a 10.3% increase from $1.020 billion in the previous year [4][10] Business Overview - Lowe's operates over 1,700 stores in North America, focusing on a wide range of home improvement products [5] - The company's Total Home strategy aims to cater to both DIY enthusiasts and professional contractors, enhancing customer service and product offerings [5][8] Strategic Initiatives - The company has prioritized enhancing its online presence and streamlining supply chain operations to improve customer engagement and experience [6][9] - The omnichannel retail strategy has led to significant growth in online sales, with many customers conducting online research before visiting physical stores [7] Market Segments - The Pro segment has shown substantial growth, driven by targeted investments and services for professional contractors, which is crucial for revenue stability amid economic pressures [8] - Challenges in the DIY segment persist due to high interest rates and reduced housing market activity, yet the company has demonstrated resilience [10] Shareholder Value - Lowe's returned $2.05 billion to shareholders through share repurchases and dividends, highlighting its commitment to delivering shareholder value [11] Future Outlook - For fiscal 2025, Lowe's projects sales between $83.5 billion and $84.5 billion, with comparable sales growth expected to be between 0% and 1% [12] - The company plans to leverage its Pro and online strategies to capture market opportunities amid ongoing economic uncertainties [12][13]

Just a day after competitor Home Depot (HD) had its turn in the earnings confessional, Lowe's Companies Inc (NYSE:LOW) revealed a top- and bottom-line win for the fourth quarter amid improving sales. The home improvement retailer also saw demand fall amid higher interest rates and home costs, however, issuing a lackluster sales and profit forecast for the year.LOW is up 3.6% to trade at $251 at last glance, after yesterday snapping a six-day losing streak. The stock has only had three positive weeks since t ...

Financial Performance - Net earnings for Q4 2024 were $1.1 billion, with diluted EPS of $1.99, an increase from $1.77 in Q4 2023[1] - Total sales for the quarter reached $18.6 billion, with comparable sales increasing by 0.2%[1] - Net earnings for the fiscal year ended January 31, 2025, were $6,957 million, a decrease of 9.93% compared to $7,726 million for the previous year[17] - Adjusted diluted earnings per share for the three months ended January 31, 2025, was $1.93, slightly down from the reported diluted earnings per share of $1.99[22] Sales Projections - For fiscal year 2025, total sales are projected to be between $83.5 billion and $84.5 billion, with comparable sales expected to be flat to up 1%[9] Capital Management - The company repurchased approximately 5.5 million shares for $1.4 billion and paid $650 million in dividends during the quarter[3] - The company repurchased $4,053 million of common stock during the fiscal year, compared to $6,138 million in the previous year, reflecting a decrease of 33.94%[17] Operating Metrics - Operating income margin is expected to be between 12.3% and 12.4% for fiscal year 2025[9] - The effective income tax rate for fiscal year 2025 is estimated to be approximately 24.5%[9] Assets and Liabilities - Total assets increased to $43,102 million as of January 31, 2025, up from $41,795 million on February 2, 2024, representing a growth of 3.13%[16] - Current liabilities increased to $18,757 million, up from $15,568 million, reflecting a rise of 20.73%[16] - Long-term debt, excluding current maturities, decreased to $32,901 million from $35,384 million, a reduction of 7.01%[16] - Total liabilities increased to $57,333 million, up from $56,845 million, indicating a growth of 0.86%[16] Cash Flow - Net cash provided by operating activities rose to $9,625 million, an increase of 18.19% from $8,140 million in the prior year[17] - Cash and cash equivalents at the end of the period were $1,761 million, a significant increase from $921 million at the beginning of the period[17] Strategic Initiatives - Lowe's aims to continue its strategic initiatives to capitalize on the expected recovery in the home improvement market[2] - The company recognized an $80 million pre-tax gain from the sale of its Canadian retail business, positively impacting diluted EPS by $0.06[1] - The company recognized a pre-tax income of $80 million related to the Canadian retail business transaction in the fourth quarter of fiscal 2024[20] Capital Expenditures - The company plans to allocate approximately $2.5 billion for capital expenditures in fiscal year 2025[9] Store Operations - As of January 31, 2025, Lowe's operated 1,748 stores with a total retail selling space of 195 million square feet[2]

Core Insights - Lowe's reported quarterly earnings of $1.93 per share, exceeding the Zacks Consensus Estimate of $1.83 per share, and showing an increase from $1.77 per share a year ago, representing an earnings surprise of 5.46% [1] - The company achieved revenues of $18.55 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 1.13%, although this is a slight decrease from year-ago revenues of $18.6 billion [2] - Lowe's has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The future performance of Lowe's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $3.12 on revenues of $21.26 billion, and for the current fiscal year, it is $12.56 on revenues of $84.49 billion [7] Industry Context - The Retail - Home Furnishings industry, to which Lowe's belongs, is currently ranked in the bottom 45% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Lowe's stock may also be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8] Stock Performance - Since the beginning of the year, Lowe's shares have declined by approximately 1.8%, contrasting with the S&P 500's gain of 1.3% [3] - The current estimate revisions trend for Lowe's is mixed, resulting in a Zacks Rank 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6]

Core Insights - Lowe's exceeded Wall Street's expectations for quarterly earnings and revenue, projecting modest sales growth for the upcoming year [1][2] - The company anticipates full-year total sales between $83.5 billion and $84.5 billion, with comparable sales expected to be flat to up 1% year-over-year [1][3] - For the fiscal fourth quarter, Lowe's reported a net income of $1.13 billion, or $1.99 per share, compared to $1.02 billion, or $1.77 per share, in the previous year [2][6] Financial Performance - Lowe's fiscal fourth quarter revenue was $18.55 billion, surpassing expectations of $18.29 billion [6] - The company's net sales for the fiscal year totaled $83.67 billion, reflecting a 3% decline from the prior fiscal year [3] Market Context - The home improvement market is currently facing challenges due to slower housing turnover and higher borrowing costs, which have kept some customers from making purchases [3] - Competitor Home Depot also reported better-than-expected results but indicated that the housing market and mortgage rates are unlikely to change significantly in the near future [4]

Core Points - Lowe's Companies, Inc. reported net earnings of $1.1 billion and diluted earnings per share (EPS) of $1.99 for the quarter ended January 31, 2025, an increase from diluted EPS of $1.77 in the fourth quarter of 2023 [1][10] - Total sales for the quarter were $18.6 billion, with comparable sales increasing by 0.2%, driven by high-single-digit Pro and online sales, strong holiday performance, and rebuilding efforts post-hurricanes [2][3] - The company recognized an $80 million pre-tax gain from the sale of its Canadian retail business, which positively impacted diluted EPS by $0.06 [1][24] Financial Performance - The adjusted diluted EPS for the fourth quarter of 2024, excluding the gain from the Canadian business sale, was $1.93 [1][27] - Gross margin for the quarter was 32.86%, compared to 32.40% in the same quarter of the previous year [15] - Operating income for the quarter was $1.83 billion, representing 9.87% of sales, an increase from 9.07% in the prior year [15] Capital Allocation - During the quarter, the company repurchased approximately 5.5 million shares for $1.4 billion and paid $650 million in dividends [4] - For the fiscal year, Lowe's returned $6.5 billion to shareholders through share repurchases and dividends [4] Business Outlook - The company introduced its outlook for fiscal 2025, indicating continued near-term uncertainty in the home improvement market [5] - Expected total sales for fiscal 2025 are projected to be between $83.5 billion and $84.5 billion, with comparable sales anticipated to be flat to up 1% compared to the prior year [11] Operational Highlights - As of January 31, 2025, Lowe's operated 1,748 stores with a total retail selling space of 195 million square feet [3] - The company serves approximately 16 million customer transactions weekly in the United States [8]