US' Lowe's Q3 2024 earnings dip to $1.7 bn, sales decline to $20.2 bn

21 Nov '24

3 min read

US' Lowe's Q3 2024 earnings dip to $1.7 bn, sales decline to $20.2 bn

Refrina - stock.adobe.com

Insights

Lowe's Companies, Inc has reported net earnings of $1.7 billion (8.41 per cent of sales) on sales of $20.2 billion, down from $1.77 billion and $20.5 billion YoY in Q3 2024.
Comparable sales fell 1.1 per cent.
For 9M 2024, net earnings dropped to $5.83 billion on $65.12 billion sales.
FY24 outlook revised, projecting $83-$83.5 billion sales and adjusted EPS of $11.80-$11.90.

Lowe's Companies, Inc, a US-based home improvement company, has reported net earnings of $1.7 billion (8.41 per cent of sales) for the third quarter (Q3) ended November 1, 2024, compared to $1.77 billion (8.66 per cent of sales) in Q3 2023. Total sales were $20.2 billion, compared to $20.5 billion in the prior-year quarter. The operating income stood at $2.54 billion, representing 12.57 per cent of sales, down from $2.7 billion (13.17 per cent of sales) in the prior year.

The diluted earnings per share (EPS) of the company was $2.99 compared to diluted EPS of $3.06 in Q3 of 2023. The gross margin reached $6.8 billion (33.69 per cent of sales), compared to $6.89 billion (33.66 per cent) in Q3 2023, reflecting stable cost management, Lowe said in a press release.

Comparable sales of the company decreased 1.1 per cent, driven by continued softness in DIY bigger-ticket discretionary demand, which was partly offset by storm-related sales and positive comparable sales in Pro and online. Selling, general, and administrative (SG&A) expenses increased slightly to $3.83 billion (18.97 per cent of sales) compared to $3.76 billion (18.37 per cent) in the same period prior year.

Lowe's operated 1,747 stores representing 195.0 million square feet of retail selling space till the end of Q3. With a disciplined focus on its leading capital allocation programme, the company continues to generate long-term shareholder value. During the quarter, the company repurchased approximately 2.9 million shares for $758 million, and it paid $654 million in dividends, stated the press release.

"Our results this quarter were modestly better-than-expected, even excluding storm-related activity, driven by high-single-digit positive comps in Pro, strong online sales and smaller-ticket outdoor DIY projects," said Marvin R. Ellison, chairman, president and chief executive officer (CEO) of Lowe.

Nine months (9M) 2024 financials

Net earnings of the company were $5.83 billion (8.96 per cent of sales), down from $6.71 billion (9.90 per cent) in the prior year. Net sales of the company reached $65.12 billion, down from $67.78 billion in the same period of 2023. Gross margin was $21.78 billion (33.45 per cent of sales), compared to $22.82 billion (33.67 per cent) in the prior year, and the operating income was $8.64 billion (13.26 per cent of sales), a decrease from $9.87 billion (14.56 per cent) in 9M 2023.

Outlook for full year 2024

Lowe expects total sales from $83.0 to $83.5 billion (previously $82.7 to $83.2 billion). The comparable sales are expected to be down from -3.0 to -3.5 per cent, as compared to prior year (previously down -3.5 to -4.0 per cent). It also expects adjusted operating income as a percentage of sales (adjusted operating margin) to be from 12.3 to 12.4 per cent (previously 12.4 to 12.5 per cent). The company also expects net interest expense of $1.3 billion (previously $1.4 billion), adjusted effective income tax rate of approximately 24.5 per cent and adjusted diluted earnings per share of approximately $11.80 to $11.90 (previously $11.70 to $11.90).

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