Lowe's(US:LOW)2024-03-25 20:18Store Operations - As of February 2, 2024, Lowe's operates 1,746 home improvement stores across approximately 195 million square feet of retail selling space[7]. - The company operated 1,746 stores in the United States as of February 2, 2024, following the divestiture of its Canadian retail business[218]. Sales and Revenue - Net sales for the fiscal year ended February 2, 2024, were $86,377 million, a decrease from $97,059 million in the previous fiscal year[209]. - Total net sales for the year ended February 2, 2024, were $86,377 million, down from $97,059 million in the previous year, representing a decline of about 11%[264]. - Revenue from products was $83,002 million, a decrease from $93,392 million, while service revenue was $2,097 million, down from $2,178 million[264]. - The United States generated $86,377 million in sales, down from $92,010 million in the prior year, indicating a decrease of 6.5%[269]. Financial Performance - Gross margin for the fiscal year was $28,844 million, representing 33.39% of net sales, compared to 33.23% in the prior year[209]. - Operating income increased to $11,557 million, accounting for 13.38% of net sales, up from 10.47% in the previous year[209]. - Net earnings for the fiscal year were $7,726 million, or 8.95% of net sales, compared to $6,437 million, or 6.63% in the previous year[210]. - Basic earnings per share rose to $13.23, compared to $10.20 in the previous fiscal year[209]. - Comprehensive income for the fiscal year was $7,719 million, or 8.94% of net sales, compared to $6,780 million, or 6.99% in the previous year[210]. Expenses and Liabilities - The company reported a decrease in selling, general, and administrative expenses to $15,570 million, which is 18.02% of net sales, down from 20.94% in the previous year[209]. - Interest expense increased to $1,382 million, representing 1.60% of net sales, compared to 1.16% in the prior year[209]. - Total liabilities decreased from $57,962 million in February 3, 2023 to $56,845 million in February 2, 2024, a reduction of approximately 2%[212]. Inventory and Assets - Merchandise inventory decreased from $18,532 million in February 3, 2023 to $16,894 million in February 2, 2024, a reduction of approximately 9%[212]. - Total current assets decreased from $21,442 million in February 3, 2023 to $19,071 million in February 2, 2024, a decline of approximately 11%[212]. - The company reported a reserve for loss on obsolete inventory of $245 million as of February 2, 2024, compared to $139 million as of February 3, 2023, indicating a 76.3% increase year-over-year[227]. Environmental and Social Responsibility - In fiscal 2023, Lowe's was included in the Dow Jones Sustainability North America Index for the fifth consecutive year, reflecting its commitment to environmental and social practices[41]. - 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 40% and scope 3 emissions by 22.5% below 2021 levels by 2030[46]. - Over the past three years, Lowe's has invested more than $400 million in energy efficiency and renewable energy projects[47]. - The Lowe's Foundation established the Gable Grants program, committing $50 million over five years to prepare 50,000 individuals for skilled trades careers[42]. Workforce and Talent Development - Lowe's employs approximately 168,000 full-time and 116,000 part-time associates as of February 2, 2024[33]. - The company received over 15 notable employer of choice awards in fiscal 2023, highlighting its commitment to workforce inclusion and diversity[32]. - More than 80% of store leadership positions were filled internally in the last year, demonstrating Lowe's focus on internal talent development[38]. - The company offers a tuition-free education program and the Track to the Trades program, which connects associates with apprenticeship certifications in various skilled trades[40]. Shareholder Returns and Stock Performance - The total share repurchases for the year ended February 2, 2024, amounted to 29.9 million shares at a cost of $6.334 billion[315]. - The company has $14.6 billion remaining under its $15.0 billion share repurchase program as of February 2, 2024[309]. - Cash dividend payments for the fiscal year were $2,531 million, compared to $2,370 million in the previous year, an increase of about 7%[216].