#United States #Inc. #earnings report #Home Improvement #Mooresville #Lowe's Companies

Overview of Lowe's Fourth Quarter Financial Results

Lowe's Companies, Inc. has publicly unveiled its financial performance for the fourth quarter of fiscal year 2024, ending January 31, 2025. The company's net earnings reached an impressive $1.1 billion, translating to a diluted earnings per share (EPS) of $1.99. This represents an increase from the $1.77 EPS reported in the comparable quarter of the previous year. Such results underscore Lowe's resilience in navigating market challenges while maximizing growth opportunities.

Key Financial Highlights

For the quarter in question, total sales amounted to $18.6 billion, exhibiting a modest increase in comparable sales by 0.2%. This uptick was primarily attributed to strong performance in both the Pro and online sectors. The successful holiday season and the company’s proactive rebuilding efforts following recent hurricanes further bolstered sales numbers. However, Lowe's also faced ongoing pressures in DIY discretionary spending, impacting overall performance.

Lowe's Chairman and CEO, Marvin R. Ellison, expressed satisfaction with the results, noting, "Our achievements this quarter were better than expected, demonstrating the traction gained from our Total Home strategic initiatives. The long-term outlook for the home improvement industry remains promising, and we are well-positioned to leverage an anticipated recovery."

Shareholder Returns and Capital Allocation

Reflecting its commitment to shareholder value, Lowe’s announced the repurchase of approximately 5.5 million shares for around $1.4 billion, along with dividend payments totaling $650 million during this quarter. Throughout the fiscal year, the company returned an impressive $6.5 billion to its shareholders via share buybacks and dividends, showcasing Lowe’s robust capital allocation strategy aimed at generating sustainable shareholder value.

Looking Ahead: 2025 Forecast

Lowe's introduced its broader financial outlook for fiscal year 2025, which presents a cautious yet optimistic viewpoint amid market uncertainties. The expectations include:

• - Total sales in the range of $83.5 to $84.5 billion.
• - Comparable sales anticipated to remain flat or potentially grow up to 1% compared to the prior year.
• - Operating margin projected between 12.3% and 12.4%.
• - A net interest expense of approximately $1.3 billion and depreciation and amortization costs around $1.8 billion.
• - An effective income tax rate of approximately 24.5% and a diluted EPS estimate of $12.15 to $12.40
• - Planned capital expenditures of about $2.5 billion.

Conclusion

The recent results indicate Lowe's continuing commitment to enhancing its business model and customer engagement strategies, which ultimately contribute to the company's growth prospects. As the home improvement market continues to evolve, Lowe's is focused on adapting to consumer needs while maintaining profitability and shareholder satisfaction. Investors and stakeholders can look forward to further insights during the upcoming conference call slated for today at 9 a.m. ET.

For more details, stakeholders can visit Lowe’s investor relations webpage at ir.lowes.com.