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Lowe’s (LOW) FY Conference Transcript
2025-06-11 18:30
Lowe’s (LOW) FY Conference June 11, 2025 01:30 PM ET Speaker0 Well, good afternoon. Thank you all for joining us. My name is Brian Nagel. I'm a senior equity research analyst here at Oppenheimer covering consumer growth and ecommerce. So this is day three of our twenty fifth annual Oppenheimer consumer growth and ecommerce conference. So, again, thank you all for joining us. I am very pleased to have with us our next presenting company, Lowe's, and three of the company's executives. That's CEO, Marvin Ellis ...
Lowe's Just Issued a Warning About Its Coming Quarters. Should You Consider Buying the Stock Anyway?
The Motley Fool· 2025-05-25 11:00
Core Viewpoint - The market reacted negatively to Lowe's recent earnings report despite beating earnings estimates, primarily due to cautious guidance for future quarters [1][11]. Financial Performance - Lowe's reported net sales of over $20.9 billion, a 2% decline from the same period in 2024, with comparable sales down by 1.7% [3]. - Net income decreased to $1.64 billion ($2.92 per diluted share) from $1.76 billion in the previous year [3]. - Analysts had estimated revenue slightly under $21 billion and per-share net income of $2.88, expecting a 2.1% decline in same-store sales [5]. Competitive Landscape - Home Depot, Lowe's main competitor, reported a 9.5% increase in revenue while missing on net income, which may have influenced investor sentiment towards Lowe's [6]. Management Commentary - CEO Marvin Ellison noted that cautious consumer spending and adverse weather conditions negatively impacted results, particularly at the start of the spring season [7]. - CFO Brandon Sink expressed hope for improved discretionary spending and DIY traffic but indicated that current conditions are not expected to change significantly in 2025 [11][12]. Future Guidance - Lowe's maintained its 2025 sales guidance of $83.5 billion to $84.5 billion, with comparable sales expected to be flat to 1% higher than the previous fiscal year [9]. - The projected net income per share is between $12.15 and $12.40, aligning closely with analyst estimates [10]. Growth Strategy - The company announced the acquisition of Artisan Design Group for over $1.3 billion, which is expected to enhance its Pro offerings and overall fundamentals [13][14]. Investor Sentiment - The overall investor reaction to Lowe's quarterly performance was negative, reflecting concerns about the company's ability to reverse the downward trend in its business [15].
Home Depot(HD) - 2026 Q1 - Earnings Call Transcript
2025-05-20 14:00
Financial Data and Key Metrics Changes - Total sales for Q1 2025 were $39.9 billion, an increase of 9.4% from the same period last year [5][25]. - Adjusted diluted earnings per share were $3.56, down from $3.67 in Q1 2024, reflecting a decrease of approximately 3% [6][28]. - Gross margin was 33.8%, a decrease of 35 basis points from the previous year [26]. - Operating margin for Q1 was 12.9%, compared to 13.9% in Q1 2024 [27]. - Return on invested capital was 31.3%, down from 37.1% in the same quarter last year [29]. Business Line Data and Key Metrics Changes - Six out of 16 merchandising departments posted positive comps, including appliances, plumbing, indoor garden, electrical, outdoor garden, and building materials [19]. - Comp sales in the U.S. were positive 0.2% for the quarter, with negative 3.3% in February, positive 1.3% in March, and positive 1.8% in April [25][26]. - Pro comp sales outpaced DIY customers, with strength in pro-heavy categories like gypsum, decking, concrete, and siding [20]. Market Data and Key Metrics Changes - In local currency, Canada posted comps below the company average, while Mexico posted positive comps [6]. - Foreign exchange rates negatively impacted total company comps by approximately 70 basis points for the quarter [26]. Company Strategy and Development Direction - The company is focused on diversifying its global supply chain, with over 50% of purchases sourced in the U.S. and plans to ensure no single country outside the U.S. represents more than 10% of purchases [7][9]. - The company aims to invest in its business to gain market share, particularly in periods of disruption, and is focused on enhancing the pro ecosystem to better serve professionals [10][11]. - The addressable market for home improvement is approximately $1 trillion, with a healthy consumer base and rising home equity encouraging investment in home improvements [9]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current macroeconomic environment, with customer engagement continuing from the previous fiscal year [30]. - The company reaffirmed its fiscal 2025 guidance, expecting total sales growth of approximately 2.8% and comp sales growth of about 1% compared to fiscal 2024 [30][31]. - Management noted that while there is macro uncertainty, the fundamentals of home improvement remain strong, with a healthy consumer base and increasing home equity [39][40]. Other Important Information - The company opened three new stores, bringing the total store count to 2,350 [28]. - Merchandise inventories were $25.8 billion, up approximately $3.3 billion compared to the previous year, with inventory turns down from 4.5 times to 4.3 times [28]. Q&A Session Summary Question: Insights on overall demand environment and sales trends - Management noted that macro concerns have eased, with improved consumer sentiment and low unemployment, but larger remodeling projects remain pressured due to high interest rates [36][39]. Question: SG&A growth and one-time impacts - SG&A grew 12% year-over-year, influenced by a legal settlement from the previous year and the addition of SRS expenses [41][42]. Question: Comp guidance and potential for better performance - Management reaffirmed guidance, noting that FX pressure impacted results, but they feel good about business heading into Q2 [50][51]. Question: Tariffs and pricing strategy - The company is diversifying its supply chain to mitigate tariff impacts and does not anticipate broad-based price increases for customers [60][62]. Question: Deferred demand in home improvement - Management expects to capture share opportunities from deferred demand as macro conditions improve [68][70]. Question: Regional performance and housing activity - Some markets showed slight softening, but overall sales remained stable, with weather being a significant factor in performance [99][100].
Red Zone Ready: CRAFTSMAN Reveals DIYers' Winning Playbook to Tackle Home Improvement Projects This Season
Prnewswire· 2025-04-10 12:00
Core Insights - CRAFTSMAN, a brand under Stanley Black & Decker, released a survey revealing how DIYers prepare for home improvement projects, likening the process to a football draft where teamwork and the right tools are essential [2][3] Group 1: Survey Findings - The survey indicates that more than half of DIYers consider the powered cordless screwdriver as their top tool choice, highlighting its versatility [5][7] - Spouses are the most preferred project partners, with 30% of respondents selecting them as their first overall pick, followed by best friends at 23% [6][5] - Rock music is the leading genre for DIYers to get motivated, chosen by 22% of respondents, followed by hip-hop/rap at 17% and country at 16% [4][12] Group 2: Tool Preferences - The powered cordless screwdriver is viewed as a dual-threat tool, capable of handling various tasks with precision [7] - The circular saw is recognized for its powerful cutting ability, akin to a running back breaking through defenses [7] - The hammer drill is noted for its effectiveness in penetrating tough materials like concrete and brick, serving as a hard-hitting specialist in the DIY toolkit [7] Group 3: Survey Methodology - The survey was conducted by Atomik Research, involving 1,006 adults across the United States, ensuring a representative sample based on demographic variables [9]