Lowe's(US:LOW)2025-03-24 20:33Sales and Revenue - In fiscal 2024, installed sales accounted for approximately 5% of total sales, with major contributions from categories like Kitchen & Bath, Flooring, and Appliances[31]. - Net sales for the fiscal year ended January 31, 2025, were $83,674 million, a decrease of 3.9% from $86,377 million in the previous year[217]. - Revenue from products was $80,538 million in 2025, down from $83,002 million in 2024, and $93,392 million in 2023, indicating a decline of 3.0% year-over-year[278]. - Revenue from services decreased to $1,934 million in 2025 from $2,097 million in 2024, and $2,178 million in 2023, reflecting a decline of 7.8%[278]. - Net earnings for the fiscal year ended January 31, 2025, were $6,957 million, down 9.9% from $7,726 million in the prior year, with a net earnings margin of 8.31%[218]. - Basic earnings per share for the fiscal year ended January 31, 2025, were $12.25, compared to $13.23 in the previous year[217]. Financial Performance - Gross margin for the fiscal year ended January 31, 2025, was $27,877 million, representing 33.32% of net sales, compared to 33.39% in the previous year[217]. - The company reported a decrease in selling, general and administrative expenses to $15,682 million, which is 18.74% of net sales, compared to 18.02% in the previous year[217]. - The company’s merchandise inventory increased to $17,409 million as of January 31, 2025, from $16,894 million in the previous year[219]. - The company’s interest expense for the fiscal year ended January 31, 2025, was $1,313 million, slightly down from $1,382 million in the previous year[217]. - Cash dividends declared increased to $4.55 per share, totaling $2,578 million for the fiscal year ended January 31, 2025, compared to $2,531 million in the previous year[221]. - Net cash provided by operating activities was $9,625 million for the fiscal year ended January 31, 2025, an increase of 18.1% from $8,140 million in the previous year[221]. Assets and Liabilities - Total assets as of January 31, 2025, were $43,102 million, an increase from $41,795 million as of February 2, 2024[219]. - Total liabilities as of January 31, 2025, were $57,333 million, compared to $56,845 million in the previous year[219]. - The company's long-term debt, excluding finance lease obligations, was $35,012 million as of January 31, 2025, compared to $35,411 million on February 2, 2024, reflecting a decrease of approximately 1.1%[292]. - Total lease liabilities amounted to $4,666 million as of January 31, 2025, down from $4,733 million on February 2, 2024, indicating a reduction of about 1.4%[295]. Operational Strategy - The Total Home strategy focuses on five pillars: driving Pro penetration, accelerating online sales, expanding home services, creating a loyalty ecosystem, and increasing space productivity[13][14]. - The company has expanded its Pro offerings and invested in high-volume Pro products to enhance Pro customer penetration[15]. - The company has over 120 supply chain facilities, including regional distribution centers and fulfillment centers, to support its omnichannel capabilities[27][29]. - The home improvement market is influenced by key indicators such as home price appreciation and real disposable personal income, which are monitored to assess demand[16]. Sustainability and Corporate Responsibility - In fiscal 2024, Lowe's was included in the Dow Jones Sustainability North America Index for the sixth consecutive year, reflecting its commitment to environmental, social, and operational practices[49]. - Lowe's aims to achieve net-zero emissions across its scope 1, 2, and 3 GHG emissions by 2050, with interim targets of reducing scope 1 and 2 emissions by 42% and scope 3 emissions by 25% below 2021 levels by 2030[55]. - Over the past three years, Lowe's has invested more than $300 million in projects to enhance energy efficiency, including replacing aging HVAC units and upgrading indoor LED lighting[56]. - The company has implemented a wood sourcing policy to ensure no illegal logging or deforestation, enhancing its commitment to sustainable practices[52]. - The company collaborates with the EPA's SmartWay program to reduce transportation emissions and aims for 100% SmartWay certification for its transportation providers[58]. - Lowe's continues to focus on reducing water consumption and has implemented smart irrigation controllers and leak detection technology in its operations[60]. Employee and Workplace Culture - Lowe's employs approximately 161,000 full-time and 109,000 part-time associates as of January 31, 2025, with a minimum wage starting at $15 per hour[38][40]. - Lowe's has received several employer of choice awards in fiscal 2024, highlighting its commitment to creating a positive workplace culture[37]. - More than 85% of store leadership positions were filled internally in the last year, demonstrating Lowe's focus on internal talent development[45]. - The company has shifted its diversity and inclusion initiatives to a unified program, enhancing networking and development opportunities for all associates[44]. Shareholder Returns - The total share repurchases for the year ended January 31, 2025, amounted to 15.8 million shares at a cost of $3.928 billion[321]. - The Company has $10.8 billion remaining under its $15.0 billion share repurchase program as of January 31, 2025[315]. - The Company recognized share-based payment expense of $221 million in 2024, with a total associated income tax benefit of $42 million[324].