Lowe's Companies, Inc. (NYSE:LOW) Q2 2023 Earnings Conference Call August 22, 2023 9:00 AM ET Company Participants Kate Pearlman - VP, IR Marvin R. Ellison - Chairman and CEO William P. Boltz - EVP, Merchandising Joseph M. McFarland III - EVP, Stores Brandon Sink - EVP and CFO Conference Call Participants Christopher Horvers - J.P. Morgan Chase Simeon Gutman - Morgan Stanley Elizabeth Suzuki - Bank of America Zachary Fadem - Wells Fargo Scot Ciccarelli - Truist Securities Michael Lasser - UBS Eric Bosshard ...

Summary of Lowe's Companies, Inc. Conference Call Company Overview - **Company**: Lowe's Companies, Inc. (NYSE: LOW) - **Event**: Oppenheimer 23rd Annual Consumer Growth & E-Commerce Conference - **Date**: June 28, 2023 - **Participants**: Marvin Ellison (Chairman and CEO), Brandon Sink (EVP and CFO), Kate Pearlman (Investor Relations) Key Industry Insights - **Home Improvement Demand**: Post-pandemic demand dynamics in home improvement are cautious, influenced by macroeconomic factors [3][6] - **Consumer Behavior**: Consumers are cautious with discretionary spending, but historical demand drivers such as home price appreciation, age of housing stock, and personal disposable income remain positive [3][5] - **Home Price Appreciation**: Home prices have increased by approximately 35% compared to pre-pandemic levels, encouraging investment in home improvements [5] - **Non-Discretionary Sales**: Two-thirds of Lowe's sales are non-discretionary, indicating that essential repairs drive demand [4] Company Performance and Strategy - **Long-Term Outlook**: Despite near-term pressures, Lowe's maintains a bullish outlook for the medium to long-term due to strong demand drivers and strategic investments [6][9] - **Operational Improvements**: Lowe's is focused on enhancing operational efficiency, improving supply chain, and modernizing stores to boost productivity [19][22] - **Pro Customer Focus**: The company is investing in its Pro customer segment, which represents a significant growth opportunity, with a $0.5 trillion addressable market [27][30] Financial Performance - **Operating Margin Target**: Lowe's aims to achieve a 14.5% operating margin, with a focus on increasing sales productivity and improving Pro and online business segments [20][22] - **Capital Expenditure**: The company plans to maintain a capital expenditure of approximately $2 billion annually, focusing on operational improvements rather than significant new investments [24] Market Dynamics - **Regional Differences**: There are no significant measurable differences in housing prices across markets, although some areas like Austin and parts of California have seen price moderation [12] - **Inflation Impact**: Inflation has affected sales, particularly in commodities like lumber, but Lowe's is actively managing costs and expects to maintain average ticket prices outside of commodity-driven categories [48][52] Customer Insights - **Rural Market Strategy**: Lowe's is focusing on rural markets, identifying 300 stores for assortment changes to better meet local customer needs, which has shown early positive results [40][45] - **Customer Loyalty**: The company is enhancing its loyalty program and CRM capabilities to better serve and retain Pro customers [31] Capital Allocation - **Shareholder Returns**: Lowe's continues to prioritize high-return projects, targeting a 35% dividend payout ratio and returning excess capital through share repurchases [58] - **Debt Management**: The company maintains a competitive cost of capital with a fixed average interest rate of 3.95%, minimizing exposure to interest rate fluctuations [59] Conclusion - **Future Outlook**: Lowe's is optimistic about its growth trajectory, driven by strategic investments, operational improvements, and a focus on customer needs, particularly in the Pro segment and rural markets [44][60]

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 5, 2023 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 Companies, Inc. (NYSE:LOW) Q1 2023 Earnings Conference Call May 23, 2023 9:00 AM ET Company Participants Kate Pearlman - Vice President, Investor Relations Marvin Ellison - Chairman and Chief Executive Officer Bill Boltz - Executive Vice President, Merchandising Joe McFarland - Executive Vice President, Stores Brandon Sink - Executive Vice President and Chief Financial Officer Conference Call Participants Liz Suzuki - Bank of America Simeon Gutman - Morgan Stanley Steven Zaccone - Citigroup Brian Nag ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended February 3, 2023 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 o ...

Lowe's Companies, Inc. (NYSE:LOW) Q4 2022 Earnings Conference Call March 1, 2023 9:00 AM ET Company Participants Kate Pearlman - Vice President, Investor Relations & Treasurer Marvin Ellison - Chairman & Chief Executive Officer Bill Boltz - Executive Vice President, Merchandising Joe McFarland - Executive Vice President, Stores Brandon Sink - Executive Vice President & Chief Financial Officer Conference Call Participants Simeon Gutman - Morgan Stanley Patrick Hollander - Goldman Sachs Brian Nagel - Oppenhei ...

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 October 28, 2022 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 (Stat ...

Lowe's Companies, Inc. (NYSE:LOW) Q3 2022 Results Conference Call November 16, 2022 9:00 AM ET Company Participants Kate Pearlman - Vice President, Investor Relations Marvin Ellison - Chairman and Chief Executive Officer Bill Boltz - Executive Vice President, Merchandising Joe McFarland - Executive Vice President, Stores Brandon Sink - Executive Vice President and Chief Financial Officer Conference Call Participants Simeon Gutman - Morgan Stanley Michael Lasser - UBS Brian Nagel - Oppenheimer Liz Suzuki - B ...

Summary of Lowe's Companies, Inc. Conference Call Company Overview - **Company**: Lowe's Companies, Inc. (NYSE:LOW) - **Event**: Goldman Sachs 29th Annual Global Retailing Conference Call - **Date**: September 8, 2022 - **Participants**: Marvin Ellison (CEO), Kate McShane (Goldman Sachs) Key Industry Insights - **Market Size**: Home improvement is a $900 billion market in the U.S., with Lowe's and its largest competitor accounting for approximately $250 billion [2][4] - **Customer Base**: 90% of Lowe's customers have fixed interest rates, insulating them from immediate impacts of rising interest rates [6] - **Home Ownership Trends**: There is a significant shortage of homes (1.5 to 2 million) compared to demand, encouraging homeowners to invest in their current properties [6][14] Core Business Strategies - **Total Home Strategy**: Focus on growing both Pro and DIY segments through enhanced fulfillment capabilities and digital experiences [2][3] - **Productivity Initiatives**: Continuous improvement in operating margins through productivity initiatives and supply chain optimization [4][19] - **Sales Growth**: Targeting a $25 billion increase in sales and improving return on invested capital from 11.2% to over 36% [4][21] Demand Drivers - **Home Price Appreciation**: Record levels of home price appreciation and increased savings of $2.6 trillion, with 70% held by homeowners, support ongoing demand for home improvement [7][48] - **Aging Housing Stock**: Approximately 50% of U.S. homes are over 40 years old, indicating a need for renovations [7] - **Consumer Behavior**: Trends such as "aging in place" among boomers and sustained millennial household formation are expected to drive demand [10][13] Supply Chain and Fulfillment - **Supply Chain Transformation**: Transitioning from a store-centric model to a market delivery model to enhance efficiency and service levels for Pro customers [25][27] - **Pro Customer Focus**: Developing fulfillment networks to deliver directly to job sites and enhancing service levels in stores [27][29] Inventory Management - **Effective Inventory Control**: Lowe's has managed to reduce inventory units mid-single digits compared to the previous year, indicating strong inventory management practices [38] - **Seasonal Challenges**: The company acknowledges seasonal dependencies, particularly in outdoor product categories, but feels well-positioned for the back half of the year [40][41] Pricing Strategy - **Cost Management**: Robust processes for managing costs and pricing, ensuring competitive pricing while justifying cost increases [44][45] - **Consumer Value Perception**: Customers are willing to pay for perceived value beyond just price, as evidenced by strong sales of higher-priced items [46] Future Outlook - **Consumer Confidence**: Positive macro indicators suggest a stable consumer environment for home improvement in 2023, with no signs of a dramatic downturn [48][49] - **Margin Management**: Lowe's is prepared to manage margins effectively in varying inflationary environments, maintaining operational leverage [51] - **Promotional Strategy**: The company aims to avoid aggressive promotions, focusing instead on a competitive pricing strategy [53] Additional Insights - **Pro Penetration Growth**: Pro sales have increased from 19% to 25% since 2018, with plans to continue growing this segment through improved service and loyalty programs [30][32] - **Long-term Strategy**: Lowe's plans to outline its multi-year financial strategy and key initiatives at the upcoming Analyst and Investor Conference [23]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 29, 2022 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |------------------------------------------------------------------------------------------------------------|--------------------------------------------| | | | | For the tran ...