Lowe's Companies Inc

Last modified by Asif Farooqui on 2023/11/23 09:41

Contents

Summary
Financial Highlights
Company Overview
References

Summary

Lowe's Companies, Inc. is a FORTUNE 50 home improvement company.
Lowe’s operated 1,700 home improvement stores in the United State.
The company employs approximately 300,000 associates.

Lowe's Companies, Inc. (NYSE: LOW, LSE: 0JVQ) is a FORTUNE® 50 home improvement company serving approximately 17 million customer transactions a week in the United States. With total fiscal year 2022 sales of over $97 billion, approximately $92 billion of sales were generated in the United States, where Lowe's operates over 1,700 home improvement stores and employs approximately 300,000 associates.

Financial Highlights

Third Quarter 2023 Results¹

Nov. 21, 2023; Lowe's Companies, Inc. (NYSE: LOW) today reported net earnings of $1.8 billion and diluted earnings per share (EPS) of $3.06 for the quarter ended Nov. 3, 2023, compared to diluted EPS of $0.25 in the third quarter of 2022, which included a pre-tax long-lived asset impairment of $2.1 billion related to its Canadian retail business. Excluding the impairment charge in the prior year, third quarter 2022 adjusted diluted EPS was $3.27.

Total sales for the quarter were $20.5 billion. Comparable sales decreased 7.4% due to a decline in DIY discretionary spending, partially offset by positive Pro customer comp sales.

During the quarter, the company repurchased approximately 7.3 million shares for $1.6 billion, and it paid $642 million in dividends.

Fiscal Year 2022

Net sales for fiscal 2022 increased 0.8% over fiscal 2021 to $97.1 billion. The increase in total sales was primarily driven by the 53rd week, partially offset by a decrease in comparable sales. The 53rd week contributed approximately 1.4% to the sales growth for 2022. Comparable sales decreased 0.9% over fiscal 2021, driven by a 7.6% decrease in comparable customer transactions, partially offset by a 6.7% increase in comparable average ticket. Net earnings for fiscal 2022 decreased 23.8% to $6.4 billion. Diluted earnings per common share decreased 15.5% in fiscal 2022 to $10.17 from $12.04 in fiscal 2021. Included in the fiscal 2022 results is $2.5 billion of pre-tax costs associated with the sale of the Canadian retail business consisting of long-lived asset impairment, loss on sale, and additional closing costs, which decreased diluted earnings per share by $3.64. Adjusting for these items, adjusted diluted earnings per common share increased 14.7% to $13.81 in 2022 from diluted earnings per common share of $12.04 in 2021.

For fiscal 2022, cash flows from operating activities were $8.6 billion, with $1.8 billion used for capital expenditures. Continuing to deliver on its commitment to return excess cash to shareholders, the Company repurchased $14.1 billion of common stock and paid $2.4 billion in dividends during the year.

Company Overview

Lowe’s Companies, Inc. and subsidiaries is a Fortune® 50 company and the world’s second largest home improvement retailer. As of February 3, 2023, Lowe’s operated 1,738 home improvement stores in the United States, representing approximately 195 million square feet of retail selling space. On February 3, 2023, Lowe’s completed the sale of its Canadian retail business, which operated 232 stores in Canada, as well as serviced 210 dealer-owned stores. The Canadian retail business included a number of complementary formats under the banners of RONA, Lowe’s Canada, Réno-Dépôt, and Dick’s Lumber.²

The home improvement market in which the company operate is highly fragmented, serving Pro customers, individual homeowners, and renters completing a wide array of projects that vary along the spectrum of do-it-yourself (DIY) and do-it-for-me (DIFM). The Pro customer consists of three broad categories: tradespeople, repair and remodelers, and property managers. The U.S. market is its predominant market, accounting for approximately 95% of consolidated sales for the fiscal year ended February 3, 2023. As of February 3, 2023, the company completed the sale of its Canadian retail business and no longer operate in the Canada market, which accounted for approximately 5% of consolidated sales for the fiscal year ended February 3, 2023.

Channels

In-Store

The company's 1,738 Lowe’s-branded home improvement stores in the United States are generally open seven days per week and average approximately 112,000 square feet of retail selling space, plus approximately 32,000 square feet of outdoor garden center selling space.

Online

Through its websites and mobile applications, the company seek to empower consumers by providing a 24/7 shopping experience, product information, customer ratings and reviews, buying guides, how-to videos, and other information. These tools help consumers make more informed purchasing decisions and give them increased confidence to undertake home improvement projects.

On-Site

LOW has on-site specialists available for retail and Pro customers to assist them in selecting products and services for their projects. The company's Pro sales managers meet with Pro customers at their place of business or on a job site and leverage nearby stores and its distribution network to ensure the company meet customer needs for products and resources.

Contact Centers

Lowe’s operates contact centers in a virtual workplace. These contact centers help Lowe’s enable an omnichannel customer experience by providing the ability to tender sales, assist with order management, coordinate deliveries, manage after-sale installations, and answer general customer questions via phone, mail, e-mail, live chat, and social media.

Stores

At February 3, 2023, its properties consisted of 1,738 stores in the United States with a total of approximately 195 million square feet of selling space. Of the total stores operating approximately 89% are owned, which includes stores on leased land, with the remainder being leased from third parties.

State	Stores	State	Stores
Alabama	38	Montana	5
Alaska	5	Nebraska	5
Arizona	32	Nevada	17
Arkansas	21	New Hampshire	13
California	112	New Jersey	40
Colorado	29	New Mexico	14
Connecticut	17	New York	70
Delaware	10	North Carolina	114
District of Columbia	1	North Dakota	3
Florida	128	Ohio	83
Georgia	64	Oklahoma	29
Hawaii	4	Oregon	14
Idaho	8	Pennsylvania	83
Illinois	37	Rhode Island	5
Indiana	43	South Carolina	50
Iowa	11	South Dakota	3
Kansas	12	Tennessee	60
Kentucky	42	Texas	143
Louisiana	30	Utah	17
Maine	11	Vermont	2
Maryland	29	Virginia	69
Massachusetts	28	Washington	35
Michigan	45	West Virginia	18
Minnesota	10	Wisconsin	8
Mississippi	24	Wyoming	1
Missouri	46	Total	1,738

Company History

Lowe’s was founded in 1921 with the opening of its first hardware store in North Wilkesboro, North Carolina. The Company was incorporated in North Carolina in 1952 and has been publicly held since 1961.³

Year	Milestone
1921	First General Store Opens - L.S. Lowe founds Lowe’s North Wilkesboro Hardware. In addition to hardware and building materials, the store sold sewing notions, dry goods, horse tack, snuff produce and groceries.
1940	L.S. Lowe’s son, Jim Lowe, takes over the hardware store in 1940 after his father’s passing.
1949	Growth in North Carolina - Lowe’s opens its second store, in Sparta, N.C.
1958	Growing Stronger - In 1958, Lowe’s reaches 344 associates. Lowe's then shifts focus from DIY customers to Pros.
1961	Lowe’s Goes Public - Lowe’s becomes a publicly-traded company on October 10, 1961. Roughly 400,000 shares are sold at $12.25 per share on the first day of trading.
1979	On December 19, Lowe’s is listed on the New York Stock Exchange.
1981	Lowe’s is listed on the London Stock Exchange as of January 26, 1981.
1995	Entering the Digital Age - In 1995, Lowes.com is launched, marking the company’s entrance into the digital market.
2015	Expanding to India - In 2015, Lowe’s continues its global approach to hardware and establishes an office in Bangalore, India.
2021	Lowe’s Turns 100! - Lowe’s commemorates its centennial by celebrating 100 years of service to its customers and communities.