LOWES COMPANIES INC0000060667false00000606672024-11-192024-11-19

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): November 19, 2024
lowesgraphicimage01.jpg
LOWE’S COMPANIES, INC.
(Exact name of registrant as specified in its charter)
North Carolina1-789856-0578072
(State or other jurisdiction
of incorporation)		(Commission File
Number)		(IRS Employer
 Identification No.)
1000 Lowes Blvd., Mooresville, NC
28117
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code:
(704) 758-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.50 per shareLOWNew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐Emerging growth company
☐If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.



Item 2.02    Results of Operations and Financial Condition.

On November 19, 2024, Lowe’s Companies, Inc. (the “Company”) issued a press release and related infographic, furnished as Exhibits 99.1 and 99.2, respectively, and incorporated herein by reference, announcing the Company’s financial results for its third quarter ended November 1, 2024.

The information provided pursuant to Item 2.02, including the exhibits attached hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

Item 9.01    Financial Statements and Exhibits.

(d) Exhibits:


SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
LOWE’S COMPANIES, INC.
Date: November 19, 2024
By:/s/ Dan C. Griggs, Jr.
Name:Dan C. Griggs, Jr.
Title:Senior Vice President, Tax and Chief Accounting Officer



Exhibit 99.1
lowesgraphicimage01.jpg
November 19, 2024
For 6:00 a.m. ET Release

LOWE’S REPORTS THIRD QUARTER 2024 SALES AND EARNINGS RESULTS
— Diluted EPS of $2.99; Adjusted Diluted EPS1 of $2.89 —
— Comparable Sales Decreased 1.1% —
— Updates Full Year 2024 Outlook —

MOORESVILLE, N.C., Nov. 19, 2024 – Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $1.7 billion and diluted earnings per share (EPS) of $2.99 for the quarter ended Nov. 1, 2024, compared to diluted EPS of $3.06 in the third quarter of 2023. During the third quarter, the company recognized a $54 million pre-tax gain associated with the 2022 sale of the Canadian retail business. This positively impacted third quarter diluted EPS by $0.10. Excluding this gain, third quarter 2024 adjusted diluted EPS1 was $2.89.

Total sales for the quarter were $20.2 billion, compared to $20.5 billion in the prior-year quarter. Comparable sales for the quarter decreased 1.1%, 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.

“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, Lowe’s chairman, president and CEO. “I’d like to extend my heartfelt sympathy to those who suffered losses from Hurricanes Helene and Milton. I would also like to express my appreciation for our associates, suppliers and first responders for their commitment to the impacted communities. Next month at our Analyst and Investor Conference, I look forward to discussing our new growth and productivity initiatives, which underscore our confidence that we are well-positioned to capitalize on the expected recovery in home improvement.”

As of Nov. 1, 2024, Lowe’s operated 1,747 stores representing 195.0 million square feet of retail selling space.

Capital Allocation
With a disciplined focus on its leading capital allocation program, 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.














1 Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures Reconciliation” section of this release for additional information, as well as reconciliations between the Company’s GAAP and non-GAAP financial results.



Lowe’s Business Outlook

Based on third quarter results and anticipated modest storm-related demand in the fourth quarter, the company is updating its outlook for the operating results of full year 2024.

Adjusted operating income, adjusted operating margin, adjusted effective income tax rate and adjusted diluted EPS are non-GAAP financial measures that exclude the gains associated with the 2022 sale of the Canadian retail business, recorded in the second and third quarter. The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items (which may be significant) without unreasonable effort, including timing of adjustments associated with the sale of the Canadian retail business.

Full Year 2024 Outlook
•Total sales of $83.0 to $83.5 billion (previously $82.7 to $83.2 billion)
•Comparable sales expected to be down -3.0 to -3.5%, as compared to prior year (previously down -3.5 to -4.0%)
•Adjusted operating income as a percentage of sales (adjusted operating margin) of 12.3 to 12.4% (previously 12.4 to 12.5%)
•Net interest expense of approximately $1.3 billion (previously $1.4 billion)
•Adjusted effective income tax rate of approximately 24.5%
•Adjusted diluted earnings per share of approximately $11.80 to $11.90 (previously $11.70 to $11.90)
•Capital expenditures of approximately $2 billion

A conference call to discuss third quarter 2024 operating results is scheduled for today, Tuesday, Nov. 19, at 9 a.m. ET. The conference call will be available by webcast and can be accessed by visiting Lowe’s website at ir.lowes.com and clicking on Lowe’s Third Quarter 2024 Earnings Conference Call Webcast. Supplemental slides will be available approximately 15 minutes prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.

Lowe’s Companies, Inc.

Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 16 million customer transactions a week in the United States. With total fiscal year 2023 sales of more than $86 billion, Lowe’s operates over 1,700 home improvement stores and employs approximately 300,000 associates. Based in Mooresville, N.C., Lowe’s supports the communities it serves through programs focused on creating safe, affordable housing and helping to develop the next generation of skilled trade experts. For more information, visit Lowes.com.

















Disclosure Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believe”, “expect”, “anticipate”, “plan”, “desire”, “project”, “estimate”, “intend”, “will”, “should”, “could”, “would”, “may”, “strategy”, “potential”, “opportunity”, “outlook”, “scenario”, “guidance”, and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, share repurchases, and Lowe’s strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties, and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe’s and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, age of housing stock, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, geopolitical or armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in “Item 1A - Risk Factors” in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.

LOW-IR
    
###

Contacts:Shareholder/Analyst Inquiries:Media Inquiries:
Kate PearlmanSteve Salazar
704-775-3856steve.j.salazar@lowes.com
kate.pearlman@lowes.com






Lowe’s Companies, Inc.
Consolidated Statements of Current Earnings and Accumulated Deficit (Unaudited)
In Millions, Except Per Share and Percentage Data
Three Months EndedNine Months Ended
November 1, 2024November 3, 2023November 1, 2024November 3, 2023
Current EarningsAmount% SalesAmount% SalesAmount% SalesAmount% Sales
Net sales$20,170 100.00 $20,471 100.00 $65,120 100.00 $67,775 100.00 
Cost of sales13,374 66.31 13,580 66.34 43,340 66.55 44,958 66.33 
Gross margin6,796 33.69 6,891 33.66 21,780 33.45 22,817 33.67 
Expenses:
Selling, general and administrative3,827 18.97 3,761 18.37 11,860 18.22 11,673 17.23 
Depreciation and amortization433 2.15 434 2.12 1,284 1.97 1,275 1.88 
Operating income2,536 12.57 2,696 13.17 8,636 13.26 9,869 14.56 
Interest – net317 1.57 345 1.68 985 1.51 1,033 1.52 
Pre-tax earnings2,219 11.00 2,351 11.49 7,651 11.75 8,836 13.04 
Income tax provision 524 2.59 578 2.83 1,818 2.79 2,130 3.14 
Net earnings$1,695 8.41 $1,773 8.66 $5,833 8.96 $6,706 9.90 
Weighted average common shares outstanding – basic
565 576 568 585 
Basic earnings per common share (1)
$2.99 $3.07 $10.24 $11.43 
Weighted average common shares outstanding – diluted
566 577 569 587 
Diluted earnings per common share (1)
$2.99 $3.06 $10.22 $11.40 
Cash dividends per share
$1.15 $1.10 $3.40 $3.25 
Accumulated Deficit
Balance at beginning of period$(14,342)$(15,341)$(15,637)$(14,862)
Net earnings1,695 1,773 5,833 6,706 
Cash dividends declared(650)(633)(1,933)(1,898)
Share repurchases(696)(1,543)(2,256)(5,690)
Balance at end of period$(13,993)$(15,744)$(13,993)$(15,744)
(1)    Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net earnings by the earnings allocable to participating securities. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $1,691 million for the three months ended November 1, 2024, and $1,769 million for the three months ended November 3, 2023. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $5,818 million for the nine months ended November 1, 2024, and $6,688 million for the nine months ended November 3, 2023.

Lowe’s Companies, Inc.
Consolidated Statements of Comprehensive Income (Unaudited)
In Millions, Except Percentage Data
 Three Months EndedNine Months Ended
 November 1, 2024November 3, 2023November 1, 2024November 3, 2023
 Amount% SalesAmount% SalesAmount% SalesAmount% Sales
Net earnings$1,695 8.41 $1,773 8.66 $5,833 8.96 $6,706 9.90 
Cash flow hedges – net of tax(3)(0.02)(4)(0.01)(9)(0.02)(10)(0.02)
Foreign currency translation adjustments – net of tax
— — — — — — 5 0.01 
Other
— — — — 1 — — — 
Other comprehensive loss(3)(0.02)(4)(0.01)(8)(0.02)(5)(0.01)
Comprehensive income$1,692 8.39 $1,769 8.65 $5,825 8.94 $6,701 9.89 



Lowe’s Companies, Inc.
Consolidated Balance Sheets (Unaudited)
In Millions, Except Par Value Data
November 1, 2024November 3, 2023
Assets
Current assets:
Cash and cash equivalents$3,271 $1,210 
Short-term investments 335 321 
Merchandise inventory – net17,566 17,530 
Other current assets805 907 
Total current assets21,977 19,968 
Property, less accumulated depreciation17,586 17,527 
Operating lease right-of-use assets3,771 3,647 
Long-term investments 312 238 
Deferred income taxes – net261 280 
Other assets836 859 
Total assets$44,743 $42,519 
Liabilities and shareholders' deficit
Current liabilities:
Current maturities of long-term debt$2,576 $544 
Current operating lease liabilities497 533 
Accounts payable10,602 9,914 
Accrued compensation and employee benefits 828 750 
Deferred revenue1,359 1,499 
Other current liabilities3,585 3,256 
Total current liabilities19,447 16,496 
Long-term debt, excluding current maturities 32,906 35,374 
Noncurrent operating lease liabilities3,741 3,602 
Deferred revenue – Lowe's protection plans1,260 1,228 
Other liabilities 808 966 
Total liabilities58,162 57,666 
Shareholders' deficit:
Preferred stock, $5 par value: Authorized – 5.0 million shares; Issued and outstanding – none— — 
Common stock, $0.50 par value: Authorized – 5.6 billion shares; Issued and outstanding – 565 million and 575 million, respectively282 288 
Capital in excess of par value— 7 
Accumulated deficit(13,993)(15,744)
Accumulated other comprehensive income292 302 
Total shareholders' deficit(13,419)(15,147)
Total liabilities and shareholders' deficit$44,743 $42,519 
  




Lowe’s Companies, Inc.
Consolidated Statements of Cash Flows (Unaudited)
In Millions
Nine Months Ended
November 1, 2024November 3, 2023
Cash flows from operating activities:
Net earnings$5,833 $6,706 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization1,461 1,427 
Noncash lease expense392 370 
Deferred income taxes(10)(27)
Loss on property and other assets – net11 50 
Gain on sale of business(97)(79)
Share-based payment expense164 160 
Changes in operating assets and liabilities:
Merchandise inventory – net(672)1,002 
Other operating assets114 236 
Accounts payable 1,944 (610)
Other operating liabilities(426)(2,203)
Net cash provided by operating activities8,714 7,032 
Cash flows from investing activities:
Purchases of investments(999)(1,283)
Proceeds from sale/maturity of investments918 1,215 
Capital expenditures(1,379)(1,344)
Proceeds from sale of property and other long-term assets54 29 
Proceeds from sale of business97 100 
Other – net(11)(23)
Net cash used in investing activities(1,320)(1,306)
Cash flows from financing activities:  
Net change in commercial paper— (499)
Net proceeds from issuance of debt— 2,983 
Repayment of debt(522)(576)
Proceeds from issuance of common stock under share-based payment plans95 79 
Cash dividend payments(1,916)(1,899)
Repurchases of common stock(2,681)(5,937)
Other – net(20)(15)
Net cash used in financing activities(5,044)(5,864)
Net increase/(decrease) in cash and cash equivalents2,350 (138)
Cash and cash equivalents, beginning of period921 1,348 
Cash and cash equivalents, end of period$3,271 $1,210 



Lowe’s Companies, Inc.
Non-GAAP Financial Measure Reconciliation (Unaudited)

To provide additional transparency, the Company has presented the non-GAAP financial measure of adjusted diluted earnings per share for the three months ended November 1, 2024. This measure excludes the impact of a certain item, further described below, not contemplated in Lowe’s Business Outlook to assist analysts and investors in understanding operational performance for the third quarter of fiscal 2024.

Fiscal 2024 Impacts
During fiscal 2024, the Company recognized financial impacts from the following:

•In the third quarter of fiscal 2024, the Company recognized pre-tax income of $54 million consisting of a realized gain on the contingent consideration associated with the fiscal 2022 sale of the Canadian retail business (Canadian retail business transaction).

Adjusted diluted earnings per share should not be considered an alternative to, or more meaningful indicator of, the Company’s diluted earnings per share as prepared in accordance with GAAP. The Company’s methods of determining non-GAAP financial measures may differ from the method used by other companies and may not be comparable.

A reconciliation between the Company’s GAAP and non-GAAP financial results is shown below and available on the Company’s website at ir.lowes.com.
Three Months Ended
November 1, 2024
Pre-Tax Earnings
Tax1
Net Earnings
Diluted earnings per share, as reported$2.99 
Non-GAAP adjustments – per share impacts
Canadian retail business transaction(0.10)— (0.10)
Adjusted diluted earnings per share$2.89 
1 Represents the corresponding tax benefit or expense specifically related to the item excluded from adjusted diluted earnings per share.

Financial Highlights Marvin R. Ellison, Chairman & CEO “Our results were modestly better-than- expected, even excluding storm-related activity, driven by strong Pro and online sales and smaller-ticket outdoor DIY projects. I’d like to extend my heartfelt sympathy to those who suffered losses from Hurricanes Helene and Milton. I would also like to express my appreciation for our associates, suppliers and first responders for their commitment to the impacted communities.” Q3 2024 RESULTS First ever Member Week in October with exclusive deals -1.1% COMP SALES 33.7% GROSS MARGIN +3 basis points vs. LY $2.99 DILUTED EPS -2% vs. LY Pro comp sales up high- single digits with broad-based growth across regions and product categories Online performance growth driven by improvement in traffic and conversion; double digit traffic increase on the app Comparable Sales Summary COMP TRANSACTIONS COMP $101.72 AVERAGE TICKET ONLINE SALES GROWTH -1.3% +0.2% +6.0% -0.1% -3.0% -2.8%>$500 $100-$500 <$100 5 of 15 Regions Delivered comp growth above company average Product Category Performance Comp above company average in 4 of 14 product categories BUILDING MATERIALS HARDWARE Monthly Comp Sales Performance Comp Sales by Ticket Size Total Home Strategy Updates 1. Adjusted Operating Margin and Adjusted Diluted EPS are non-GAAP financial measures. Refer to ir.lowes.com for a reconciliation of non-GAAP measures. $2.89 ADJ. DILUTED EPS 1 -6% vs LY $12M Pledged for hurricane relief 12.6% OPERATING MARGIN -60 basis points vs. LY 12.3% ADJ. OPERATING MARGIN 1 -86 basis points vs. LY We returned $1.4 BILLION to our shareholders through dividends and share repurchases -3.3% -1.2% +1.3% -6.3% -8.3% -7.3% 2024 2023 AUG SEP OCT SEASONAL & OUTDOOR LIVING PAINT Exhibit 99.2

 
Market Share Acceleration Drive Pro penetration Accelerate online business Expand installation services Drive localization Elevate assortment Total Home Strategy Providing a full complement of products and services for Pros and Consumers alike, enabling a Total Home solution for every need in the home

 
Q3 2024 Reconciliation of Non-GAAP Measures Management of Lowe's Companies, Inc. (the Company) uses certain non-GAAP financial measures to provide additional insight for analysts and investors in evaluating the Company's financial and operating performance. These non-GAAP financial measures should not be considered alternatives to, or more meaningful indicators of, the Company's financial measures as prepared in accordance with GAAP. The Company's methods of determining these non-GAAP financial measures may differ from the methods used by other companies and may not be comparable. The Company has provided the following non-GAAP financial measures to assist the user in comparing its operating performance for the three months ended November 1, 2024: adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share. These measures exclude the impacts of a certain item, further described below, not contemplated in Lowe's Business Outlook. Fiscal 2024 Impacts During fiscal 2024, the Company recognized financial impacts from the following: • In the third quarter of fiscal 2024, the Company recognized pre-tax income of $54 million consisting of a realized gain on the contingent consideration associated with the fiscal 2022 sale of the Canadian retail business (Canadian retail business transaction). The following provides a reconciliation of the Company's non-GAAP financial measures to the most directly comparable GAAP financial measures: Three Months Ended Adjusted Operating Income (in millions, except percentage data) November 1, 2024 Operating Income, As Reported $ 2,536 Canadian retail business transaction (54) Adjusted Operating Income $ 2,482 Operating Margin, % of Sales, As Reported 12.57 % Adjusted Operating Margin, % of Sales 12.31 % Three Months Ended November 1, 2024 Adjusted Diluted Earnings Per Share Pre-Tax Earnings Tax 1 Net Earnings Diluted Earnings Per Share, As Reported $ 2.99 Canadian retail business transaction (0.10) — (0.10) Adjusted Diluted Earnings Per Share $ 2.89 1 Represents the corresponding tax benefit or expense specifically related to the item excluded from adjusted diluted earnings per share.

 
v3.24.3
Cover Page
Nov. 19, 2024
Cover [Abstract]  
Document Type 8-K
Entity Registrant Name LOWES COMPANIES INC
Entity Incorporation, State or Country Code NC
Entity File Number 1-7898
Entity Tax Identification Number 56-0578072
Entity Address, Address Line One 1000 Lowes Blvd.
Entity Address, City or Town Mooresville
Entity Address, State or Province NC
City Area Code 704
Entity Address, Postal Zip Code 28117
Local Phone Number 758-1000
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, par value $0.50 per share
Trading Symbol LOW
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0000060667
Amendment Flag false
Document Period End Date Nov. 19, 2024
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