Lowe's Reports 'Total Home' Strategy Gained Traction in Q4
Net earnings were $1.13 billion, or $1.99 per diluted share, versus $1.02 billion, or $1.77 per diluted share, in the year-previous quarter. Adjusted for one-time events, net earnings were $1.93 per diluted share versus $2.28 per diluted share in the year-before period, the company maintained.
Lowe’s beat a Yahoo Finance-published analyst consensus estimate for adjusted diluted earnings per share of $1.84 and a revenue estimate of $18.29 billion.
Quarterly Performance
Comparable sales for the quarter advanced 0.2% year over year, driven by high-single-digit pro and online comparable sales, strong holiday performance, and rebuilding efforts in the wake of recent hurricanes, according to the retailer. Results were offset partially by continued near-term pressure on do-it-yourself discretionary spending, Lowe’s indicated. Net sales were $18.55 billion versus $18.6 billion in the year-earlier quarter. Operating income was $1.83 billion versus $1.69 billion in the year-prior period, the company stated.
Full Fiscal Year Overview
For the full fiscal year, net earnings were $6.96 billion, or $12.23 per diluted share, versus $7.73 billion, $13.20 per diluted share, in the year previous. Net sales were $83.67 billion versus $86.38 billion in the year earlier. Operating income was $10.47 billion versus $11.56 billion in the year prior, the company reported.
Strategic Initiatives
In a conference call, Marvin Ellison, Lowe’s chairman, president, and CEO, stated that Lowe’s is working to enhance factors that strengthen its position as an omnichannel retailer. This includes delivery and app features such as “Style Your Space” that help customers reimagine rooms they want to refresh at the touch of a button. Additionally, next month, Lowe’s, in collaboration with Open AI, is launching an AI-powered home improvement virtual advisor on lowes.com. The advisor will provide project guidance and product recommendations with links to specific items in the company's assortment.
Ellison mentioned, “Our results this quarter were once again better-than-expected, as we continue to gain traction with our Total Home strategic initiatives.” He expressed confidence in the long-term strength of the home improvement industry and in Lowe's strategy to capitalize on the expected recovery. The company is also pleased to award $80 million in discretionary bonuses to frontline associates in recognition of their hard work and dedication to delivering excellent customer service.
Feb 27, 2025
