— Comparable Sales Decreased 7.4%; Diluted EPS of $3.06 —
— Updates Full Year 2023 Outlook —
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 EPS1 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.
“In the third quarter, the company delivered strong operating performance and improved customer service despite a greater-than-expected pullback in DIY discretionary spending, particularly in bigger ticket categories. Given our 75% DIY mix, the DIY pressure disproportionately impacted our third quarter comp performance. At the same time, our investments in Pro continue to resonate, resulting in positive Pro comps again this quarter,” said Marvin R. Ellison, Lowe’s chairman, president and CEO. “As we look ahead, Lowe’s is committed to offering value and convenience this holiday season, helping our customers save time and money. I’d like to extend my appreciation to our hardworking front-line associates who continue to elevate the customer experience.”
Full Year 2023 Outlook – a 52-week year (comparisons to full year 2022 – a 53-week year)
Total sales of approximately $86 billion (previously $87 – $89 billion)
Comparable sales expected to be down approximately -5% as compared to prior year (previously down -2% to -4%)
Adjusted operating income as a percentage of sales (adjusted operating margin) of approximately 13.3% (previously 13.4% to 13.6%)
Interest expense of approximately $1.4 billion (previously $1.5 billion)
Adjusted effective income tax rate of approximately 25%
Adjusted diluted earnings per share of approximately $13.00 (previously $13.20 to $13.60)
Capital expenditures of up to $2 billion
https://www.prnewswire.com/news-releases/lowes-reports-third-quarter-2023-sales-and-earnings-results-301994117.html