Lowe’s Reports First Quarter 2023 Sales and Earnings Results

Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $2.3 billion and diluted earnings per share (EPS) of $3.77 for the quarter ended May 5, 2023, compared to diluted EPS of $3.51 in the first quarter of 2022.

During the first quarter, the company recognized a gain associated with the 2022 sale of the Canadian retail business. This positively impacted first quarter diluted EPS by $0.10. Excluding this benefit, the company delivered adjusted diluted EPS¹ of $3.67, an increase of 5% compared to prior year.

Total sales for the quarter were $22.3 billion². Comparable sales decreased 4.3%, driven by lumber deflation, unfavorable weather and lower DIY discretionary sales.  Comparable sales are based on comparison to weeks 2-14 in 2022.

“We are pleased with the performance of our business despite record lumber deflation and unfavorable spring weather. Although we delivered positive comparable sales in Pro and online for the first quarter, we are updating our full-year outlook to reflect softer-than-expected consumer demand for discretionary purchases,” said Marvin R. Ellison, Lowe’s chairman, president and CEO. “We remain optimistic about the medium-to-long term outlook for home improvement and our ability to continue to grow market share through our Total Home strategy. I would like to thank all of our front-line associates for their continued hard work and dedication.”

Capital Allocation

The company continues to execute a disciplined capital allocation program to deliver long-term, sustainable shareholder value. During the quarter, the company repurchased approximately 10.6 million shares for $2.1 billion, and it paid $633 million in dividends.

1	Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measure Reconciliation” section of this release for additional information as well as a reconciliation between the company’s GAAP and non-GAAP financial results.
2	Total first quarter sales includes approximately $735 million related to a timing shift in our fiscal calendar as we cycle over a 53-week year.

Lowe’s Business Outlook

Based on higher-than-expected lumber deflation and lower-than-expected DIY discretionary sales, the company is updating its outlook for the operating results of full year 2023.

Adjusted operating income, adjusted operating margin, adjusted diluted EPS and adjusted effective income tax rate are non-GAAP financial measures that exclude the gain associated with the 2022 sale of the Canadian retail business, recorded in the first quarter. The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort, including timing of adjustments associated with the sale of our Canadian retail business.

Full Year 2023 Outlook – a 52-week Year (comparisons to full year 2022  – a 53-week year)

• Total sales of approximately $87 – $89 billion (previously $88 – 90 billion)
• Comparable sales expected to be down -2% to -4% as compared to prior year (previously flat to down -2%)
• Adjusted operating income as a percentage of sales (adjusted operating margin) of 13.4% to 13.6% (previously 13.6% to 13.8%)
• Interest expense of approximately $1.5 billion
• Adjusted effective income tax rate of approximately 25%
• Adjusted diluted earnings per share of $13.20 to $13.60 (previously $13.60 to $14.00)
• Capital expenditures of up to $2 billion

For the complete press release, click here.

About Lowe’s Companies

Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 17 million customer transactions a week in the U.S. With total fiscal year 2022 sales of over $97 billion, approximately $92 billion of sales were generated in the U.S., where Lowe’s operates over 1,700 home improvement stores and employs approximately 300,000 associates. Based in Mooresville, N.C., Lowe’s supports the communities it serves through programs focused on creating safe, affordable housing and helping to develop the next generation of skilled trade experts. For more information, visit Lowes.com.

Source: Lowe’s Companies, Inc.