Core Insights - Lowe's is strategically investing in digital and in-store offerings to enhance value and convenience for Pro customers, driving growth amid a challenging macroeconomic landscape [1] - The company reported high single-digit growth in the Pro segment and a 9.5% increase in online sales during the fourth quarter, with a 0.2% rise in comparable store sales, marking the first positive increase in two years [2] Pro Customer Momentum and Loyalty Programs - Lowe's is gaining momentum with Pro customers and has updated its MVPs Pro Rewards & Partnership Program to MyLowe's Pro Rewards, allowing members to earn points on purchases redeemable for rewards [3] - The DIY loyalty program has 30 million members, with members outspending non-members by 50% [4] Driving Growth Through Productivity Improvement - Lowe's future growth strategy includes Perpetual Productivity Improvement (PPI) initiatives, which now extend to supply chain, merchandising, HR, IT, and online operations, focusing on store front-end transformation [5] Targeting Millennials and Strengthening Digital Experience - Millennials are leading in home improvement retail, with 25% having purchased building materials or tools in the past 30 days, compared to 19% of consumers overall [7] - Lowe's launched a Digital Home Platform for MyLowe's Rewards members, providing personalized home maintenance management and product recommendations [8] Looking Ahead - The company is prepared to outperform the market in various macro scenarios, leveraging data from loyalty programs to drive engagement and offering exclusive deals [10] - The normalization of the home improvement market remains uncertain, with a focus on tracking discretionary big-ticket items for DIY and the home installation business [11]

Core Insights - Lowe's Companies, Inc. reported fourth-quarter fiscal 2024 results with both net sales and earnings exceeding the Zacks Consensus Estimate, marking an improvement in earnings year over year despite a slight decline in net sales [1][2][3] Financial Performance - Adjusted quarterly earnings were $1.93 per share, surpassing the Zacks Consensus Estimate of $1.83 and improving from $1.77 in the same period last year [2] - Net sales reached $18,553 million, exceeding the Zacks Consensus Estimate of $18,346 million but reflecting a 0.3% year-over-year decline [3] - Comparable sales increased by 0.2%, a recovery from the 1.1% decline in the previous quarter, driven by high-single-digit growth in Pro and online sales, strong holiday performance, and post-hurricane rebuilding efforts [4] Profitability Metrics - Gross profit rose by 1.2% year over year to $6,097 million, with gross margin expanding by 50 basis points to 32.9% [5] - Operating income increased by 8.5% to $1,830 million, and operating margin expanded by 80 basis points to 9.9% [5] Financial Health - The company ended the quarter with cash and cash equivalents of $1,761 million and long-term debt of $32,901 million [6] - For fiscal 2024, Lowe's generated cash flow from operations of $9,625 million and executed a buyback of approximately 5.5 million shares, totaling $1.4 billion [6] Fiscal 2025 Outlook - Lowe's anticipates total sales between $83.5 billion and $84.5 billion for fiscal 2025, with comparable sales expected to be flat to up 1% [7] - Adjusted earnings per share are projected in the range of $12.15 to $12.40, with capital expenditures estimated at approximately $2.5 billion [8] Stock Performance - Lowe's shares have increased by 1.3% over the past six months, compared to the industry's growth of 3.2% [9]

Financial Data and Key Metrics Changes - In Q4 2024, the company reported sales of $18.6 billion with positive comparable sales growth of 0.2% [6][55] - For the full fiscal year 2024, total sales reached $83.7 billion, with an adjusted operating margin of 12.3% and adjusted earnings per share of $11.99 [6][55] - The gross margin for Q4 was 32.9%, an increase of 46 basis points year-over-year, driven by productivity initiatives [57] - Adjusted SG&A expenses were 21% of sales, reflecting an 8 basis point deleverage compared to the previous year [57] - The company generated $7.7 billion in free cash flow and returned $6.5 billion to shareholders through share repurchases and dividends in 2024 [58] Business Line Data and Key Metrics Changes - The pro segment experienced high single-digit comparable sales growth for the second consecutive quarter, driven by the TransformPro offering and improved service levels [8][22] - Online sales grew by 9.5% in Q4, with significant sales during Black Friday and Cyber Monday [9][10] - The DIY segment faced pressure, particularly in larger ticket discretionary spending, with comparable transactions declining by 1.3% [55][56] Market Data and Key Metrics Changes - The company noted a cautious consumer environment impacting DIY discretionary spending, especially for larger projects [7][13] - The macro environment remains challenging, with high mortgage rates leading to a lock-in effect and the lowest pace of existing home sales in nearly 30 years [13][14] - Despite these challenges, key drivers such as home price appreciation and disposable income growth are expected to sustain long-term demand [14][15] Company Strategy and Development Direction - The company is focused on a total home strategy, which includes driving pro penetration, accelerating online sales, and expanding home services [16][17] - Investments are being made in technology-driven productivity projects and key growth initiatives, with a disciplined focus on productivity [59][63] - The company plans to open five to ten new stores in 2025 as part of its growth strategy [64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the medium to long-term outlook despite near-term market uncertainties [14][62] - The company anticipates a flat home improvement market in 2025, with pro outpacing DIY due to repair and maintenance needs [62][63] - Management highlighted the importance of agility and strategic planning to outperform the market under various economic scenarios [17][90] Other Important Information - The company awarded $80 million in discretionary bonuses to frontline associates, reflecting appreciation for their commitment [20][51] - Lowe's donated $2 million for relief efforts in communities affected by wildfires in Southern California [19][38] Q&A Session Summary Question: Discussion on Q4 strength and context - Management acknowledged the challenging macro backdrop but expressed satisfaction with execution and positive comps despite market difficulties [72][74] Question: Gross margin expectations and vendor clawbacks - Management indicated that gross margin is expected to remain flat for the year, with PPI initiatives offsetting pressures from investments [78][80] Question: Sales guidance and market share - Management confirmed that the sales guidance remains consistent with previous expectations, factoring in weather impacts and market conditions [88][90] Question: Hurricane rebuild outlook - Management adopted a conservative approach regarding the financial benefits from hurricane rebuilds, considering timing of insurance proceeds [100] Question: Pro segment engagement and performance - Management reported positive growth across pro-centric categories, driven by improved service levels and inventory availability [107] Question: Transaction versus ticket growth expectations - Management expects slight ticket growth driven by pro strength, while DIY traffic pressures are anticipated to persist [113][115] Question: Large ticket remodeling categories performance - Management acknowledged that DIY discretionary big ticket categories are under pressure, impacting overall revenue [130][132] Question: Incremental activity to drive DIY business - Management stated there are no plans for significant changes in promotional cadence for DIY, focusing instead on leveraging the DIY loyalty program [135][137]

Market Overview - Pre-market futures show positive movement with the Dow up +126 points, S&P 500 up +33 points, Nasdaq up +178 points, and Russell 2000 up +10 points [1] - Over the past five trading days, the Dow is down -1.8%, S&P 500 down -2.3%, Nasdaq down -3.8%, and Russell 2000 down -4.0% [1] - All indexes are still up year-to-date except for the Russell 2000, with the Nasdaq barely maintaining its gains [1] Economic Indicators - Key Q4 earnings reports are anticipated, but no major economic reports are expected until New Home Sales for January are released at 10am ET [2] - New Home Sales are projected to reach 671K, lower than December's 698K but an improvement from the 12-month low of 615K in October [3] - The last time new home sales exceeded 1 million was in October 2020 [3] Company Earnings Reports - NVIDIA is set to report Q4 earnings with estimates indicating +60% growth in earnings and +70% growth in revenues, reflecting its significant market cap of $3 trillion [4] - Salesforce is expected to report Q4 results with +13.5% earnings growth and +8% revenue growth, following a rare earnings miss last quarter [5] - The TJX Companies reported Q4 earnings of $1.23 per share, beating expectations of $1.16, with revenues of $16.35 billion surpassing projections [6] - Lowe's reported earnings of $1.93 per share, exceeding consensus estimates, and revenues of $18.55 billion, outperforming expectations by +1.13% [7] - Anheuser-Busch InBev reported earnings of 88 cents per share, significantly above expectations of 72 cents, with revenues of $14.84 billion, exceeding projections by +2.5% [8]

For the quarter ended January 2025, Lowe's (LOW) reported revenue of $18.55 billion, down 0.3% over the same period last year. EPS came in at $1.93, compared to $1.77 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $18.35 billion, representing a surprise of +1.13%. The company delivered an EPS surprise of +5.46%, with the consensus EPS estimate being $1.83.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they ...

Core Insights - Lowe's Companies reported strong fourth-quarter 2024 earnings, exceeding analysts' expectations with adjusted diluted EPS of $1.93 compared to the forecast of $1.84 [2][4] - Revenue remained flat at $18.6 billion, slightly above the expected $18.3 billion, indicating resilience despite challenging economic conditions [2][4] Financial Performance - Adjusted diluted EPS increased by 9.0% year-over-year from $1.77 in Q4 2023 to $1.93 in Q4 2024 [4] - Revenue was $18.553 billion, a slight decrease of 0.2% from $18.602 billion in Q4 2023 [4] - Net earnings rose to $1.125 billion, reflecting a 10.3% increase from $1.020 billion in the previous year [4][10] Business Overview - Lowe's operates over 1,700 stores in North America, focusing on a wide range of home improvement products [5] - The company's Total Home strategy aims to cater to both DIY enthusiasts and professional contractors, enhancing customer service and product offerings [5][8] Strategic Initiatives - The company has prioritized enhancing its online presence and streamlining supply chain operations to improve customer engagement and experience [6][9] - The omnichannel retail strategy has led to significant growth in online sales, with many customers conducting online research before visiting physical stores [7] Market Segments - The Pro segment has shown substantial growth, driven by targeted investments and services for professional contractors, which is crucial for revenue stability amid economic pressures [8] - Challenges in the DIY segment persist due to high interest rates and reduced housing market activity, yet the company has demonstrated resilience [10] Shareholder Value - Lowe's returned $2.05 billion to shareholders through share repurchases and dividends, highlighting its commitment to delivering shareholder value [11] Future Outlook - For fiscal 2025, Lowe's projects sales between $83.5 billion and $84.5 billion, with comparable sales growth expected to be between 0% and 1% [12] - The company plans to leverage its Pro and online strategies to capture market opportunities amid ongoing economic uncertainties [12][13]

Just a day after competitor Home Depot (HD) had its turn in the earnings confessional, Lowe's Companies Inc (NYSE:LOW) revealed a top- and bottom-line win for the fourth quarter amid improving sales. The home improvement retailer also saw demand fall amid higher interest rates and home costs, however, issuing a lackluster sales and profit forecast for the year.LOW is up 3.6% to trade at $251 at last glance, after yesterday snapping a six-day losing streak. The stock has only had three positive weeks since t ...

Core Insights - Lowe's exceeded Wall Street's expectations for quarterly earnings and revenue, projecting modest sales growth for the upcoming year [1][2] - The company anticipates full-year total sales between $83.5 billion and $84.5 billion, with comparable sales expected to be flat to up 1% year-over-year [1][3] - For the fiscal fourth quarter, Lowe's reported a net income of $1.13 billion, or $1.99 per share, compared to $1.02 billion, or $1.77 per share, in the previous year [2][6] Financial Performance - Lowe's fiscal fourth quarter revenue was $18.55 billion, surpassing expectations of $18.29 billion [6] - The company's net sales for the fiscal year totaled $83.67 billion, reflecting a 3% decline from the prior fiscal year [3] Market Context - The home improvement market is currently facing challenges due to slower housing turnover and higher borrowing costs, which have kept some customers from making purchases [3] - Competitor Home Depot also reported better-than-expected results but indicated that the housing market and mortgage rates are unlikely to change significantly in the near future [4]

Core Points - Lowe's Companies, Inc. reported net earnings of $1.1 billion and diluted earnings per share (EPS) of $1.99 for the quarter ended January 31, 2025, an increase from diluted EPS of $1.77 in the fourth quarter of 2023 [1][10] - Total sales for the quarter were $18.6 billion, with comparable sales increasing by 0.2%, driven by high-single-digit Pro and online sales, strong holiday performance, and rebuilding efforts post-hurricanes [2][3] - The company recognized an $80 million pre-tax gain from the sale of its Canadian retail business, which positively impacted diluted EPS by $0.06 [1][24] Financial Performance - The adjusted diluted EPS for the fourth quarter of 2024, excluding the gain from the Canadian business sale, was $1.93 [1][27] - Gross margin for the quarter was 32.86%, compared to 32.40% in the same quarter of the previous year [15] - Operating income for the quarter was $1.83 billion, representing 9.87% of sales, an increase from 9.07% in the prior year [15] Capital Allocation - During the quarter, the company repurchased approximately 5.5 million shares for $1.4 billion and paid $650 million in dividends [4] - For the fiscal year, Lowe's returned $6.5 billion to shareholders through share repurchases and dividends [4] Business Outlook - The company introduced its outlook for fiscal 2025, indicating continued near-term uncertainty in the home improvement market [5] - Expected total sales for fiscal 2025 are projected to be between $83.5 billion and $84.5 billion, with comparable sales anticipated to be flat to up 1% compared to the prior year [11] Operational Highlights - As of January 31, 2025, Lowe's operated 1,748 stores with a total retail selling space of 195 million square feet [3] - The company serves approximately 16 million customer transactions weekly in the United States [8]

Financial Data and Key Metrics Changes - Total sales for fiscal year 2024 were $159.5 billion, an increase of 4.5% from the previous year [6][33] - Adjusted diluted earnings per share for the fourth quarter were $3.13, compared to $2.86 in the prior year, reflecting a 9.4% increase [7][37] - Gross margin for the fourth quarter was approximately 32.8%, a decrease of 25 basis points from the previous year [33] - Operating margin for the fourth quarter was 11.3%, down from 11.9% in the same quarter last year [35] Business Line Data and Key Metrics Changes - In the fourth quarter, 10 of the 16 merchandising departments posted positive comps, including appliances and building materials [23] - Comp sales in the fourth quarter increased by 0.8%, with U.S. stores seeing a 1.3% increase [7][31] - Online sales, excluding the impact of an extra week in the quarter, increased approximately 9% compared to the fourth quarter of last year [24] Market Data and Key Metrics Changes - 15 of the 19 U.S. regions delivered positive comps in the fourth quarter, with Canada and Mexico also reporting positive comps in local currency [8] - The company experienced a net contribution of approximately $220 million in hurricane-related sales, positively impacting total company comps by approximately 65 basis points for the quarter [32] Company Strategy and Development Direction - The company remains focused on creating the best interconnected shopping experience and growing its Pro wallet share through strategic investments [9][10] - The acquisition of SRS contributed $6.4 billion in sales for the seven months of ownership, with expectations for mid-single-digit organic growth in fiscal 2025 [11][41] - Plans to open 13 new stores in fiscal 2025, building on the 12 new stores opened in fiscal 2024 [13][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying momentum of the business, despite uncertainties in the macroeconomic environment [40] - The company expects total sales growth of approximately 2.8% and comp sales growth of approximately 1% for fiscal 2025 [41][43] - Management noted that while there are signs of normalization in the home improvement market, continued pressure on larger remodeling projects is anticipated [40] Other Important Information - The company announced a 2.2% increase in its quarterly dividend to $2.30 per share, equating to an annual dividend of $9.20 per share [39] - Return on invested capital was approximately 31.3%, down from 36.7% in the previous year [38] Q&A Session Summary Question: What is the macro housing backdrop and its impact on comp sales? - Management indicated that while there was slight improvement in housing turnover, they do not expect a significant rebound in new housing starts or mortgage rates [47][48] Question: Were the increases in appliances and paint volume-driven? - Management noted that the positive performance was a combination of healthy transactions and unit performance across various categories [60][62] Question: What market share assumptions are embedded in the 2025 outlook? - Management expects the overall market to be flat, with continued strength in their business initiatives contributing to incremental sales [71][72] Question: How is the SRS acquisition impacting the bottom line? - Management confirmed that SRS is cash accretive and contributing positively to both top and bottom lines, with a mix impact of about 40 basis points [105][106] Question: What is the current pricing environment? - Management stated that the pricing environment has settled into a rational market, with no significant changes in promotional activity compared to pre-COVID levels [106][108]