Lowe's(LOW) - 2025 Q3 - Quarterly Results

Third Quarter 2024 Financial Highlights Lowe's reported third-quarter 2024 sales of $20.2 billion, with comparable sales down 1.1% due to DIY softness, partially offset by strong Pro and online channel performance Q3 2024 Key Financial Metrics | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Total Sales | $20.2 billion | $20.5 billion | -1.5% | | Comparable Sales | -1.1% | N/A | N/A | | Net Earnings | $1.7 billion | N/A | N/A | | Diluted EPS | $2.99 | $3.06 | -2.3% | | Adjusted Diluted EPS | $2.89 | N/A | N/A | - Comparable sales decline was driven by softness in DIY bigger-ticket discretionary demand[2] - Performance was partly offset by storm-related sales and positive comparable sales in Pro and online, which saw high-single-digit positive comps[2][3] - The company recognized a $54 million pre-tax gain from the 2022 sale of its Canadian retail business, which positively impacted diluted EPS by $0.10[2] Capital Allocation Lowe's returned $1.412 billion to shareholders in Q3 through share repurchases and dividends, continuing its capital allocation program Q3 2024 Shareholder Returns | Activity | Amount (in millions) | | :--- | :--- | | Share Repurchases | $758 | | Dividends Paid | $654 | Lowe's Business Outlook The company updated its full-year 2024 outlook, raising sales forecasts and narrowing comparable sales decline, while slightly lowering adjusted operating margin Full Year 2024 Outlook Update | Metric | Updated FY 2024 Outlook | Previous FY 2024 Outlook | | :--- | :--- | :--- | | Total Sales | $83.0 to $83.5 billion | $82.7 to $83.2 billion | | Comparable Sales | -3.0% to -3.5% | -3.5% to -4.0% | | Adjusted Operating Margin | 12.3% to 12.4% | 12.4% to 12.5% | | Adjusted Diluted EPS | Approx. $11.80 to $11.90 | $11.70 to $11.90 | | Net Interest Expense | Approx. $1.3 billion | Approx. $1.4 billion | | Capital Expenditures | Approx. $2 billion | Approx. $2 billion | Financial Statements This section presents unaudited consolidated financial statements for Q3 and the first nine months of fiscal 2024, including earnings, comprehensive income, balance sheets, and cash flows Consolidated Statements of Current Earnings (Income Statement) For Q3 2024, net sales decreased to $20,170 million from $20,471 million year-over-year, with net earnings also declining to $1,695 million from $1,773 million Q3 Income Statement Highlights (in millions) | Metric | Three Months Ended Nov 1, 2024 | Three Months Ended Nov 3, 2023 | | :--- | :--- | :--- | | Net Sales | $20,170 | $20,471 | | Gross Margin | $6,796 | $6,891 | | Operating Income | $2,536 | $2,696 | | Net Earnings | $1,695 | $1,773 | Nine Months Income Statement Highlights (in millions) | Metric | Nine Months Ended Nov 1, 2024 | Nine Months Ended Nov 3, 2023 | | :--- | :--- | :--- | | Net Sales | $65,120 | $67,775 | | Operating Income | $8,636 | $9,869 | | Net Earnings | $5,833 | $6,706 | Consolidated Statements of Comprehensive Income For Q3 2024, comprehensive income was $1,692 million, slightly below net earnings due to cash flow hedges, compared to $1,769 million in the prior-year quarter - Comprehensive income for Q3 2024 was $1,692 million, compared to $1,769 million for Q3 2023[17] Consolidated Balance Sheets As of November 1, 2024, total assets were $44,743 million, with cash increasing to $3,271 million, and total liabilities at $58,162 million, resulting in a $13,419 million shareholders' deficit Balance Sheet Highlights (in millions) | Account | Nov 1, 2024 | Nov 3, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $3,271 | $1,210 | | Merchandise inventory – net | $17,566 | $17,530 | | Total assets | $44,743 | $42,519 | | Long-term debt | $32,906 | $35,374 | | Total liabilities | $58,162 | $57,666 | | Total shareholders' deficit | $(13,419) | $(15,147) | Consolidated Statements of Cash Flows For the nine months ended November 1, 2024, net cash from operations increased to $8,714 million, leading to a net increase in cash and cash equivalents of $2,350 million Nine Months Cash Flow Summary (in millions) | Activity | Nine Months Ended Nov 1, 2024 | Nine Months Ended Nov 3, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $8,714 | $7,032 | | Net cash used in investing activities | $(1,320) | $(1,306) | | Net cash used in financing activities | $(5,044) | $(5,864) | | Net increase/(decrease) in cash | $2,350 | $(138) | | Cash and cash equivalents, end of period | $3,271 | $1,210 | Non-GAAP Financial Measure Reconciliation This section reconciles GAAP diluted EPS to non-GAAP adjusted diluted EPS for Q3, adjusting for a $0.10 per share pre-tax gain from the Canadian retail business sale - The company adjusts GAAP results to exclude a pre-tax gain of $54 million related to the sale of the Canadian retail business[21] Q3 2024 EPS Reconciliation | Metric | Per Share Amount ($) | | :--- | :--- | | Diluted EPS, as reported (GAAP) | $2.99 | | Canadian retail business transaction impact | ($0.10) | | Adjusted Diluted EPS (Non-GAAP) | $2.89 | Disclosure Regarding Forward-Looking Statements This section provides legal disclaimers for forward-looking statements, cautioning that actual results may differ due to economic conditions, inflation, and housing market risks - The report includes forward-looking statements concerning future financial results, business outlook, and strategic initiatives[11] - These statements involve risks and uncertainties, including changes in economic conditions, inflation, interest rates, and housing turnover, which could cause actual results to differ[12]