Core Insights - Lowe's has launched Lowe's Style Studio™ for Apple Vision Pro, allowing customers to visualize and design their dream kitchens in an immersive 3D experience [1][2] - The pilot program will begin on March 15, 2025, in five stores across Austin, Texas, and will feature 45-minute consultations with Lowe's associates [2][3] - The technology utilizes spatial computing to blend digital content with physical space, enhancing customer interaction and experience [2][4] Company Overview - Lowe's Companies, Inc. is a FORTUNE® 50 home improvement company, serving approximately 16 million customer transactions weekly in the U.S. [6] - The company reported total fiscal year 2024 sales exceeding $83 billion and operates over 1,700 home improvement stores with around 300,000 employees [6] Technology and Features - Lowe's Style Studio™ incorporates a teleport feature, allowing users to view their kitchen from different angles with a simple finger flick [4] - The app is available in the App Store for Apple Vision Pro and complements other Lowe's technologies, such as MyLowe's Home and Style Your Space [5] Community Engagement - Lowe's is committed to supporting communities through initiatives focused on safe housing, community space improvement, and skilled trade development [6][8]

Investment Rating - The report initiates an "Outperform" rating for Lowe's [1][5][81] Core Insights - Lowe's is the world's second-largest home improvement retailer, with over 1,900 stores in the U.S. and Canada, offering a wide range of products to meet DIY and professional customer needs [6][13] - The U.S. home improvement market reached $1 trillion in 2022, with long-term growth potential driven by factors such as housing prices, housing age, and per capita disposable income [23][27] - The company has a strong competitive position in home appliances and outdoor categories, supported by a differentiated brand strategy and a robust supply chain [11][38][65] Financial Summary - Revenue projections for 2024-2026 are $83.3 billion, $84.3 billion, and $87.4 billion, with year-on-year changes of -3.5%, 1.2%, and 3.6% respectively [3][81] - Net income estimates for the same period are $6.8 billion, $6.9 billion, and $7.5 billion, with year-on-year changes of -11.4%, 1.0%, and 8.0% respectively [3][81] - The gross margin is expected to remain stable around 33.4% over the forecast period [9][82] Market Position and Strategy - Lowe's has a significant opportunity for store expansion, particularly in regions where it has fewer locations compared to competitors like Home Depot [54][59] - The company employs a long-tail strategy with a large number of SKUs, enhancing customer acquisition and sales per store [59][65] - Lowe's aims to increase its PRO customer segment, which currently represents a smaller portion of its revenue compared to competitors [41][47] Competitive Landscape - The home improvement market is highly fragmented, with significant growth potential for Lowe's as it enhances its online presence and installation services [27][34] - Lowe's has established a unique supply chain strategy that allows for rapid delivery of large appliances, setting it apart from competitors [65][66] Historical Performance - From 2019 to 2023, Lowe's revenue grew from $71.3 billion to $97 billion, with a CAGR of 3.90% [70] - The company has maintained a stable gross margin, with net profit increasing significantly during the same period [70][71]

Core Insights - Lowe's has launched Mylow, the first AI-powered home improvement virtual advisor, aimed at enhancing customer service and providing real-time answers to home improvement questions [2][4][5] Company Overview - Lowe's Companies, Inc. is a FORTUNE® 50 home improvement company with over 1,700 stores and approximately 300,000 associates, serving around 16 million customer transactions weekly in the U.S. [8] - The company reported total fiscal year 2024 sales exceeding $83 billion [8] Product Features - Mylow offers customers the ability to ask home improvement questions and receive immediate, conversational answers, making it easier for DIYers to navigate complex projects [4][5] - The virtual advisor links project insights to product discovery, helping customers find the right tools and materials for their projects [5][7] - Mylow is currently available on desktop and mobile web for MyLowe's Rewards members, with plans for voice capabilities and integration into Lowe's app later this year [7] Technology Collaboration - The development of Mylow involved collaboration with OpenAI, reflecting Lowe's commitment to leveraging emerging technologies to improve customer experience [4][5]

Core Viewpoint - Both Home Depot (HD) and Lowe's (LOW) have shown positive year-over-year comparable sales growth for the first time in eight periods, indicating a potential recovery in the home improvement market [3][4][17]. Group 1: Quarterly Results - Home Depot's comparable store sales increased by 0.8% year-over-year, with U.S. comparable sales rising by 1.3% [4]. - Lowe's comparable store sales rose by 0.2% year-over-year, surpassing the consensus estimate of a -1.4% decline [5][4]. - Both companies have reported their second consecutive positive readings on comparable sales, suggesting improving performance in existing locations [8][4]. Group 2: Valuation - Lowe's shares are trading at a lower forward 12-month earnings multiple compared to Home Depot, with a significantly lower PEG ratio [10]. - Lowe's is projected to achieve a 4.3% year-over-year EPS growth this fiscal year, while Home Depot is expected to see only 1.6% growth [10]. - Given the current PEG ratios, Lowe's valuation appears more attractive [10]. Group 3: Estimate Revisions - Analysts have revised EPS expectations more negatively for Home Depot compared to Lowe's following the latest earnings releases [12][16]. - The stability in Lowe's earnings picture is viewed positively, while the downward revisions for Home Depot raise concerns [16]. - Top line revisions for both companies' upcoming earnings reports have been marginally positive [16]. Group 4: Overall Outlook - Despite near-term uncertainties in the home improvement market, the positive change in comparable sales for both companies suggests potential momentum [17]. - Lowe's shares are currently considered the better investment based on valuation, forecasted EPS growth, and a more favorable earnings outlook following recent results [18].

Core Insights - Lowe's and Home Depot have reported a return to comparable store growth in Q4 2024, marking the first positive growth in over a year, indicating end-market strength and operational efficiencies [1][4][8] - Organic growth is expected to continue into 2025, supported by increased store counts, enhancing shareholder value and capital returns [2][12] Financial Performance - Lowe's net revenue for Q4 was $18.55 billion, a decrease of 0.3% year-over-year, but $0.26 billion better than analyst consensus [5] - The company experienced gross margin pressure but improved operational efficiencies led to an 80 basis-point increase in operating margin and a 58-point increase in net margin [6] - Earnings increased by $0.15 or 840 basis points annually, outperforming adjusted expectations by 500 basis points, providing strong cash flow for debt reduction and shareholder returns [7] Market Outlook - Guidance for 2025 indicates continued growth, including comparable store growth, although less than analysts' predictions, which has created a buying opportunity in the market [8] - Analysts maintain a bullish outlook for Lowe's stock, with price targets ranging from $282 to $305, indicating potential upside of 7% to 17% [12][14] Capital Management - The company has reduced its share count by 2.7% in 2024 through a slower pace of buybacks, allowing for significant debt reduction [11] - The dividend remains safe and reliable, expected to grow annually, with a payout ratio under 40% of earnings [11] Technical Analysis - The stock market showed a favorable technical action with a 3.5% rise in premarket trading, confirming support at critical levels and aligning with an uptrend [13] - Institutional buying activity has reached multi-year highs, indicating strong demand for Lowe's stock ahead of earnings releases [14]

New funding expands foundation's roster of funded partners to 52 organizations offering scalable training programs in dozens of states MOORESVILLE, N.C., Feb. 27, 2025 /PRNewswire/ -- The Lowe's Foundation today announced nearly $9 million in Gable Grants to strengthen 15 nonprofits on the front lines of a growing skilled trades workforce movement. From Alaska to Mississippi, each organization is helping prepare new tradespeople as rising wages fuel more career opportunities. Over the past 12 months in cons ...

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 ...