LOWE’S REPORTS THIRD QUARTER 2022 SALES AND EARNINGS RESULTS

—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.

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.
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.

SOURCE Lowe’s Corporations, Inc.