LOWE’S REPORTS THIRD QUARTER 2022 SALES AND EARNINGS RESULTS

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—U.S. Comparable Gross sales Elevated 3.0% —
— Third Quarter Diluted EPS of $0.25; Adjusted Diluted EPS1 of $3.27—
— Raises Full 12 months 2022 Outlook—

MOORESVILLE, N.C., Nov. 16, 2022 /PRNewswire/ — Lowe’s Corporations, Inc. (NYSE: LOW) at present reported internet earnings of $154 million and diluted earnings per share (EPS) of $0.25 for the quarter ended Oct. 28, 2022, which included a pre-tax non-cash asset impairment cost of $2.1 billion associated to its Canadian retail enterprise, in comparison with diluted EPS of $2.73 within the third quarter of 2021. Excluding the impairment cost, third quarter adjusted diluted EPS1 elevated 19.8% to $3.27 in comparison with the prior yr.

Whole gross sales for the third quarter have been $23.5 billion in comparison with $22.9 billion within the third quarter of 2021, and comparable gross sales elevated 2.2%. Comparable gross sales for the U.S. house enchancment enterprise elevated 3.0% for the third quarter.

“We delivered better-than-expected outcomes this quarter, with U.S. comps up 3%, pushed by Professional development of 19% and improved DIY gross sales developments.  Gross sales on Lowes.com grew 12%, on high of 25% development final yr.  We additionally drove substantial enchancment in adjusted working margin by disciplined execution and price administration.  This enabled us to award $200 million in bonuses to our front-line hourly associates, whereas additionally asserting $170 million in everlasting wage will increase,” commented Marvin R. Ellison, Lowe’s chairman, president and CEO.  “I’m happy that we’re as soon as once more in a position to share the success of the corporate with our hard-working front-line associates, and I look ahead to discussing our subsequent chapter of development at our Analyst & Investor Convention in December.” 

Capital Allocation
With a disciplined give attention to its main capital allocation program, the corporate continues to generate long-term shareholder worth. Through the quarter, the corporate repurchased roughly 20.5 million shares for $4.0 billion, and it paid $666 million in dividends.

As of Oct. 28, 2022, Lowe’s operated 1,969 house enchancment and {hardware} shops within the U.S. and Canada representing 208 million sq. toes of retail promoting area, and it serviced roughly 212 dealer-owned shops.

The corporate is rising its full yr 2022 monetary outlook reflecting stronger-than-expected working outcomes.

All Adjusted measures exclude asset impairment and anticipated transaction prices related to the sale of our Canadian retail enterprise, which is at the moment anticipated to shut in early 2023.

Full 12 months 2022 Outlook — a 53-week 12 months (comparisons to full yr 2021 — a 52-week yr)

  • Whole gross sales of roughly $97$98 billion, together with the 53rd week
  • 53rd week anticipated to extend complete gross sales by roughly $1.0 billion to $1.5 billion
  • Comparable gross sales anticipated to be flat to down -1% as in comparison with prior yr
  • Gross margin fee up barely in comparison with prior yr
  • Depreciation and amortization of roughly $1.75 billion
  • Adjusted working revenue2 as a proportion of gross sales (adjusted working margin2) of 13.0%
  • Curiosity expense of $1.1 to $1.2 billion
  • Adjusted efficient revenue tax fee2 of roughly 25%
  • Adjusted diluted earnings per share2 of $13.65 to $13.80 (beforehand $13.10 to $13.60)
  • Whole share repurchases of roughly $13 billion (beforehand $12 billion)
  • Adjusted ROIC2 of over 37%
  • Capital expenditures of as much as $2 billion

The Canadian retail enterprise represents lower than 6% of consolidated full yr 2022 gross sales outlook, and roughly 60 foundation factors of dilution on the consolidated full yr 2022 working margin outlook.

A convention name to debate third quarter 2022 working outcomes is scheduled for at present, Wednesday, Nov. 16, at 9 a.m. ET. The convention name will likely be obtainable by webcast and could be accessed by visiting Lowe’s web site at ir.lowes.com and clicking on Lowe’s Third Quarter 2022 Earnings Convention Name Webcast.  Supplemental slides will likely be obtainable roughly quarter-hour previous to the beginning of the convention name. A replay of the decision will likely be archived at ir.lowes.com.

Lowe’s Corporations, Inc. (NYSE: LOW) is a FORTUNE® 50 house enchancment firm serving roughly 19 million buyer transactions every week in the US and Canada. With fiscal yr 2021 gross sales of over $96 billion, Lowe’s and its associated companies function or service almost 2,200 house enchancment and {hardware} shops and make use of over 300,000 associates. Primarily based in Mooresville, N.C., Lowe’s helps the communities it serves by packages centered on creating secure, reasonably priced housing and serving to to develop the subsequent technology of expert commerce consultants. For extra data, go to Lowes.com.

Disclosure Relating to Ahead-Trying Statements

This press launch consists of “forward-looking statements” throughout the that means of the Personal Securities Litigation Reform Act of 1995.  Statements together with phrases akin to “imagine”, “anticipate”, “anticipate”, “plan”, “want”, “challenge”, “estimate”, “intend”, “will”, “ought to”, “may”, “would”, “could”, “technique”, “potential”, “alternative”, “outlook”, “situation”, “steerage”, and related expressions are forward-looking statements.  Ahead-looking statements contain, amongst different issues, expectations, projections, and assumptions about future monetary and working outcomes, aims, enterprise outlook, priorities, gross sales development, shareholder worth, capital expenditures, money flows, the housing market, the house enchancment business, demand for services and products, share repurchases, Lowe’s strategic initiatives, together with these regarding acquisitions and inclinations and the impression of such transactions on our strategic and operational plans and monetary outcomes.  Such statements contain dangers and uncertainties and we may give no assurance that they may show to be appropriate.  Precise outcomes could differ materially from these expressed or implied in such statements.

All kinds of potential dangers, uncertainties, and different components may materially have an effect on our potential to attain the outcomes both expressed or implied by these forward-looking statements together with, however not restricted to, modifications on the whole financial circumstances, akin to volatility and/or lack of liquidity now and again in U.S. and world monetary markets and the ensuing lowered availability and/or increased value of borrowing to Lowe’s and its prospects, the danger that asset impairment and deal-related transaction prices on the divestiture of the Canadian retail enterprise may in the end be larger than what we at the moment anticipate, slower charges of development in actual disposable private revenue that would have an effect on the speed of development in client spending, inflation and its impacts on discretionary spending and on our prices, shortages, and different disruptions within the labor provide, rate of interest and foreign money fluctuations, house value appreciation or reducing housing turnover, the supply of client credit score and of mortgage financing, commerce coverage modifications or further tariffs, outbreaks of pandemics, fluctuations in gasoline and vitality prices, inflation or deflation of commodity costs, pure disasters, armed conflicts, acts of each home and worldwide terrorism, and different components that may negatively have an effect on our prospects.

Buyers and others ought to fastidiously contemplate the foregoing components and different uncertainties, dangers and potential occasions together with, however not restricted to, these described in “Merchandise 1A – Threat Elements” in our most up-to-date Annual Report on Type 10-Ok and as could also be up to date now and again in Merchandise 1A in our quarterly studies on Type 10-Q or different subsequent filings with the SEC. All such forward-looking statements communicate solely as of the date they’re made, and we don’t undertake any obligation to replace these statements apart from as required by regulation. 

LOW-IR

1 Adjusted diluted earnings per share is a non-GAAP monetary measure. Consult with the “Non-GAAP Monetary Measures Reconciliation” part of this launch for added data in addition to reconciliations between the Firm’s GAAP and non-GAAP monetary outcomes.

2 Adjusted working revenue, adjusted working margin, adjusted diluted earnings per share, and adjusted efficient revenue tax fee are non-GAAP monetary measures. As well as, adjusted Return on Invested Capital (ROIC) is calculated utilizing a non-GAAP monetary measure. The Firm doesn’t present a reconciliation for non-GAAP estimates on a forward-looking foundation the place it’s unable to offer a significant or correct calculation or estimation of reconciling objects with out unreasonable effort, together with timing of and deal-related transaction prices related to the sale of our Canadian retail enterprise.

Lowe’s Corporations, Inc.

Consolidated Statements of Present Earnings and (Gathered Deficit)/Retained Earnings (Unaudited)

In Tens of millions, Besides Per Share and Proportion Information



Three Months Ended


9 Months Ended


October 28, 2022


October 29, 2021


October 28, 2022


October 29, 2021

Present Earnings

Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales

Web gross sales

$  23,479


100.00


$  22,918


100.00


$  74,614


100.00


$  74,911


100.00

Value of gross sales

15,661


66.70


15,331


66.90


49,614


66.49


49,882


66.59

Gross margin

7,818


33.30


7,587


33.10


25,000


33.51


25,029


33.41

Bills:
















Promoting, basic and administrative

6,443


27.45


4,373


19.08


15,200


20.38


13,559


18.10

Depreciation and amortization

451


1.92


425


1.85


1,345


1.80


1,226


1.64

Working revenue

924


3.93


2,789


12.17


8,455


11.33


10,244


13.67

Curiosity – internet

295


1.25


223


0.97


802


1.07


650


0.86

Pre-tax earnings

629


2.68


2,566


11.20


7,653


10.26


9,594


12.81

Revenue tax provision

475


2.02


670


2.93


2,174


2.92


2,359


3.15

Web earnings

$       154


0.66


$    1,896


8.27


$    5,479


7.34


$    7,235


9.66

































Weighted common widespread shares excellent –
     primary

618




690




638




704



Primary earnings per widespread share (1)

$      0.25




$      2.74




$      8.56




$    10.23



Weighted common widespread shares excellent –
     diluted

620




692




640




706



Diluted earnings per widespread share (1)

$      0.25




$      2.73




$      8.53




$    10.21



Money dividends per share

$      1.05




$      0.80




$      2.90




$      2.20



















(Gathered Deficit)/Retained Earnings
















Stability at starting of interval

$   (8,895)




$      (460)




$   (5,115)




$    1,117



Web earnings

154




1,896




5,479




7,235



Money dividends declared

(643)




(551)




(1,833)




(1,544)



Share repurchases

(3,929)




(2,798)




(11,844)




(8,721)



Stability at finish of interval

$  (13,313)




$  (1,913)




$  (13,313)




$  (1,913)



















(1)

Below the two-class methodology, earnings per share is calculated utilizing internet earnings allocable to widespread shares, which is derived by decreasing internet earnings by the earnings allocable to taking part securities.  Web earnings allocable to widespread shares used within the primary and diluted earnings per share calculation have been $152 million for the three months ended October 28, 2022, and $1,889 million for the three months ended October 29, 2021.  Web earnings allocable to widespread shares used within the primary and diluted earnings per share calculation have been $5,462 million for the 9 months ended October 28, 2022, and $7,207 million for the 9 months ended October 29, 2021.

Lowe’s Corporations, Inc.

Consolidated Statements of Complete Revenue (Unaudited)

In Tens of millions, Besides Proportion Information



Three Months Ended


9 Months Ended


October 28, 2022


October 29, 2021


October 28, 2022


October 29, 2021


Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales

Web earnings

$       154


0.66


$    1,896


8.27


$    5,479


7.34


$    7,235


9.66

International foreign money translation changes – internet
of tax

(168)


(0.72)


19


0.08


(173)


(0.23)


78


0.10

Money move hedges – internet of tax

170


0.72


41


0.18


352


0.47


56


0.07

Different

1



(1)



(3)



(4)


Different complete revenue

3



59


0.26


176


0.24


130


0.17

Complete revenue

$       157


0.66


$    1,955


8.53


$    5,655


7.58


$    7,365


9.83

















Lowe’s Corporations, Inc.

Consolidated Stability Sheets (Unaudited)

In Tens of millions, Besides Par Worth Information




October 28, 2022


October 29, 2021


January 28, 2022

Belongings







Present belongings:







Money and money equivalents


$                    3,192


$                    6,121


$                    1,133

Brief-term investments


464


552


271

Merchandise stock – internet


19,817


16,685


17,605

Different present belongings


1,518


1,491


1,051

Whole present belongings


24,991


24,849


20,060

Property, much less amassed depreciation


17,275


18,925


19,071

Working lease right-of-use belongings


3,512


4,161


4,108

Lengthy-term investments


63


213


199

Deferred revenue taxes – internet


301


220


164

Different belongings


831


1,032


1,038

Whole belongings


$                  46,973


$                  49,400


$                  44,640








Liabilities and shareholders’ deficit







Present liabilities:







Brief-term borrowings


$                         —


$                    1,000


$                         —

Present maturities of long-term debt


609


1,352


868

Present working lease liabilities


651


573


636

Accounts payable


12,249


11,334


11,354

Accrued compensation and worker advantages


1,405


1,353


1,561

Deferred income


1,736


1,954


1,914

Different present liabilities


4,226


3,268


3,335

Whole present liabilities


20,876


20,834


19,668

Lengthy-term debt, excluding present maturities


32,904


23,881


23,859

Noncurrent working lease liabilities


4,048


4,136


4,021

Deferred income – Lowe’s safety plans


1,184


1,119


1,127

Different liabilities


829


1,006


781

Whole liabilities


59,841


50,976


49,456








Shareholders’ deficit:







Most well-liked inventory, $5 par worth: Approved – 5.0 million shares; Issued and
     excellent – none




Frequent inventory, $0.50 par worth: Approved – 5.6 billion shares; Issued
     and excellent – 611 million, 686 million, and 670 million shares,
respectively


305


343


335

Capital in extra of par worth




Gathered deficit


(13,313)


(1,913)


(5,115)

Gathered different complete revenue/(loss)


140


(6)


(36)

Whole shareholders’ deficit


(12,868)


(1,576)


(4,816)

Whole liabilities and shareholders’ deficit


$                  46,973


$                  49,400


$                  44,640








Lowe’s Corporations, Inc.

Consolidated Statements of Money Flows (Unaudited)

In Tens of millions



9 Months Ended


October 28, 2022


October 29, 2021

Money flows from working actions:




Web earnings

$                        5,479


$                        7,235

Changes to reconcile internet earnings to internet money supplied by working actions:




Depreciation and amortization

1,509


1,388

Noncash lease expense

403


383

Deferred revenue taxes

(252)


96

Asset impairment and loss on property – internet

2,113


25

Share-based fee expense

165


169

Adjustments in working belongings and liabilities:




Merchandise stock – internet

(2,308)


(446)

Different working belongings

20


(130)

Accounts payable

921


436

Deferred income

(117)


444

Different working liabilities

205


(421)

Web money supplied by working actions

8,138


9,179





Money flows from investing actions:




Purchases of investments

(659)


(2,325)

Proceeds from sale/maturity of investments

597


2,261

Capital expenditures

(1,090)


(1,256)

Proceeds from sale of property and different long-term belongings

37


94

Different – internet


(134)

Web money utilized in investing actions

(1,115)


(1,360)





Money flows from financing actions:




Web proceeds from issuance of debt

9,667


4,972

Reimbursement of debt

(831)


(595)

Proceeds from issuance of widespread inventory underneath share-based fee plans

86


72

Money dividend funds

(1,727)


(1,433)

Repurchases of widespread inventory

(12,127)


(8,999)

Different – internet


(408)

Web money utilized in financing actions

(4,932)


(6,391)





Impact of alternate fee modifications on money

(32)


3





Web improve in money and money equivalents

2,059


1,431

Money and money equivalents, starting of interval

1,133


4,690

Money and money equivalents, finish of interval

$                        3,192


$                        6,121





Lowe’s Corporations, Inc.
Non-GAAP Monetary Measure Reconciliation (Unaudited)

To offer further transparency, the Firm has introduced a comparability to the non-GAAP monetary measure of adjusted diluted earnings per share for the three months ended October 28, 2022.  This measure excludes the impression of a discrete merchandise, additional described under, not contemplated in Lowe’s Enterprise Outlook to help analysts and buyers in understanding operational efficiency for the third quarter of fiscal 2022.

Fiscal 2022 Impacts

Through the third quarter, the Firm acknowledged monetary impacts from the next discrete merchandise, not contemplated within the Firm’s Enterprise Outlook for fiscal 2022:

  • Within the third quarter of fiscal 2022, the Firm acknowledged a pre-tax $2.1 billion long-lived asset impairment of the Canadian retail enterprise (Canadian retail enterprise transaction prices).

Adjusted diluted earnings per share shouldn’t be thought of a substitute for, or extra significant indicator of, the Firm’s diluted earnings per share as ready in accordance with GAAP.  The Firm’s strategies of figuring out non-GAAP monetary measures could differ from the strategy utilized by different firms and might not be comparable.

The Firm doesn’t present a reconciliation for non-GAAP estimates on a forward-looking foundation the place it’s unable to offer a significant or correct calculation or estimation of reconciling objects with out unreasonable effort, together with timing of and deal-related transaction prices related to the sale of our Canadian retail enterprise.

A reconciliation between the Firm’s GAAP and non-GAAP monetary outcomes is proven under and obtainable on the Firm’s web site at ir.lowes.com.


Three Months Ended


October 28, 2022


Pre-Tax
Earnings


Tax1


Web
Earnings

Diluted earnings per share, as reported





$       0.25

Non-GAAP changes per share impacts






Canada retail enterprise transaction prices

3.32


(0.30)


3.02

Adjusted diluted earnings per share





$       3.27

1   

Represents the corresponding tax profit or expense associated to the merchandise excluded from adjusted diluted earnings per share.

SOURCE Lowe’s Corporations, Inc.

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