LOWE’S REPORTS FOURTH QUARTER 2021 SALES AND EARNINGS RESULTS


MOORESVILLE, N.C., Feb. 23, 2022 /PRNewswire/ — Lowe’s Corporations, Inc. ( NYSE: LOW) in the present day reported internet earnings of $1.2 billion and diluted earnings per share (EPS) of $1.78 for the quarter ended January 28, 2022 in comparison with internet earnings of $978 million and diluted EPS of $1.32 within the fourth quarter of 2020.  Excluding expenses within the prior-year interval associated to the strategic overview of sure operations, fourth quarter diluted EPS of $1.78 elevated 34% from adjusted diluted EPS of $1.33 within the fourth quarter of 20201.

Whole gross sales for the fourth quarter had been $21.3 billion in comparison with $20.3 billion within the fourth quarter of 2020, and comparable gross sales elevated 5.0%.  Comparable gross sales for the U.S. dwelling enchancment enterprise elevated 5.1% for the fourth quarter.  Professional buyer gross sales elevated 23%.

Within the fourth quarter, the corporate awarded a discretionary year-end bonus of $265 million to front-line associates in recognition of their onerous work in the course of the pandemic in 2021.  Additionally, for the eighth consecutive quarter, 100% of Lowe’s shops earned a Successful Collectively quarterly profit-sharing bonus, leading to an anticipated complete payout of $94 million to front-line hourly associates. This cost is $24 million above the goal degree.

“We delivered one other yr of excellent efficiency in 2021, as we gained market share throughout DIY and Professional by means of our Whole Dwelling technique.  I want to thank our front-line associates for his or her large efforts this yr,” commented Marvin R. Ellison, Lowe’s chairman, president and CEO.  “In 2021, we elevated comparable gross sales by 6.9% whereas producing over 170 foundation factors of working margin enchancment, with our relentless deal with productiveness and enhanced pricing methods.  We stay assured within the long-term power of the house enchancment market, and our means to broaden working margin.”

Capital Allocation

The corporate stays dedicated to a best-in-class capital allocation technique centered on driving long-term, sustainable shareholder worth. The corporate repurchased roughly 16 million shares for $4.0 billion within the fourth quarter, and it repurchased 63 million shares for $13.1 billion for the yr.  Whole share repurchases in 2021 had been $1.1 billion greater than anticipated, reflecting better-than-expected monetary efficiency and the corporate’s dedication to return extra capital to shareholders.

The corporate additionally paid $551 million in dividends within the fourth quarter and $2.0 billion in dividends for the yr.  In complete, the corporate returned $15.1 billion to shareholders by means of share repurchases and dividends in 2021.

The corporate delivered very sturdy monetary leads to 2021, with gross sales momentum persevering with in February.  Whereas the enterprise setting stays considerably unsure, the corporate is elevating its outlook for the working outcomes of Full 12 months 2022.

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

  • Whole gross sales of $97 billion to $99 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 vary from a decline of 1% to a rise of 1%
  • Gross margin price up barely in comparison with prior yr
  • Depreciation and amortization of roughly $1.75 billion
  • Working revenue as a proportion of gross sales (working margin) of 12.8% to 13.0%
  • Curiosity expense of $1.0 to $1.1 billion
  • Efficient revenue tax price of roughly 25%
  • Diluted earnings per share of $13.10 to $13.60
  • Whole share repurchases of roughly $12 billion
  • ROIC2 of over 36%
  • Capital expenditures of roughly $2 billion

A convention name to debate fourth quarter 2021 working outcomes is scheduled for in the present day, Wednesday, February 23, at 9:00 am ET.  The convention name shall be obtainable by webcast and might be accessed by visiting Lowe’s web site at ir.lowes.com and clicking on Lowe’s Fourth Quarter 2021 Earnings Convention Name Webcast.  Supplemental slides shall be obtainable roughly quarter-hour previous to the beginning of the convention name.  A replay of the decision shall be archived at ir.lowes.com.

As of January 28, 2022, Lowe’s operated 1,971 dwelling enchancment and {hardware} shops in the US and Canada representing 208 million sq. ft of retail promoting area, and it serviced roughly 230 dealer-owned shops.

Lowe’s Corporations, Inc. ( NYSE: LOW) is a FORTUNE® 50 dwelling enchancment firm serving roughly 19 million buyer transactions per 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 dwelling 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 means of packages centered on creating protected, inexpensive housing and serving to to develop the following era of expert commerce consultants. For extra info, go to Lowes.com.

Disclosure Concerning Ahead-Wanting Statements

This press launch consists of “forward-looking statements” inside the that means of the Personal Securities Litigation Reform Act of 1995.  Statements together with phrases similar to “imagine”, “anticipate”, “anticipate”, “plan”, “want”, “venture”, “estimate”, “intend”, “will”, “ought to”, “might”, “would”, “could”, “technique”, “potential”, “alternative”, “outlook”, “state of affairs”, “steerage”, and comparable 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 progress, 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 tendencies and the impression of such transactions on our strategic and operational plans and monetary outcomes.  Such statements contain dangers and uncertainties and we can provide no assurance that they are going to 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 elements might materially have an effect on our means to realize the outcomes both expressed or implied by these forward-looking statements together with, however not restricted to, adjustments on the whole financial circumstances, similar to the speed of unemployment, rate of interest and forex fluctuations, gasoline and different power prices, slower progress in private revenue, adjustments in shopper spending, adjustments within the price of housing turnover, the supply of shopper credit score and of mortgage financing, adjustments in commodity costs, commerce coverage adjustments or extra tariffs, outbreaks of public well being crises, such because the COVID-19 pandemic, availability and price of products from suppliers, and different elements that may negatively have an effect on our prospects. 

Buyers and others ought to rigorously take into account the foregoing elements and different uncertainties, dangers and potential occasions together with, however not restricted to, these described in “Merchandise 1A – Danger Elements” in our most up-to-date Annual Report on Type 10-Okay and as could also be up to date every now and then in Merchandise 1A in our quarterly stories on Type 10-Q or different subsequent filings with the SEC. All such forward-looking statements converse solely as of the date they’re made, and we don’t undertake any obligation to replace these statements apart from as required by legislation. 

LOW-IR  

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

2 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 and the knowledge shouldn’t be obtainable with out unreasonable effort.

Lowe’s Corporations, Inc.

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

In Hundreds of thousands, Besides Per Share and Share Knowledge



Three Months Ended


Fiscal 12 months Ended


January 28, 2022


January 29, 2021


January 28, 2022


January 29, 2021

Present Earnings

Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales

Internet gross sales

$  21,339


100.00


$  20,311


100.00


$  96,250


100.00


$  89,597


100.00

Price of gross sales

14,312


67.07


13,855


68.22


64,194


66.70


60,025


66.99

Gross margin

7,027


32.93


6,456


31.78


32,056


33.30


29,572


33.01

Bills:
















Promoting, normal and administrative

4,741


22.21


4,541


22.36


18,301


19.01


18,526


20.68

Depreciation and amortization

437


2.05


391


1.92


1,662


1.73


1,399


1.56

Working revenue

1,849


8.67


1,524


7.50


12,093


12.56


9,647


10.77

Curiosity – internet

235


1.11


204


1.00


885


0.92


848


0.95

Loss on extinguishment of debt







1,060


1.18

Pre-tax earnings

1,614


7.56


1,320


6.50


11,208


11.64


7,739


8.64

Earnings tax provision

408


1.91


342


1.69


2,766


2.87


1,904


2.13

Internet earnings

$    1,206


5.65


$       978


4.81


$    8,442


8.77


$    5,835


6.51

































Weighted common widespread shares excellent –
  primary

673




734




696




748



Fundamental earnings per widespread share (1)

$      1.79




$      1.33




$    12.07




$      7.77



Weighted common widespread shares excellent –
  diluted

676




735




699




750



Diluted earnings per widespread share (1)

$      1.78




$      1.32




$    12.04




$      7.75



Money dividends per share

$      0.80




$      0.60




$      3.00




$      2.30



















Retained Earnings/(Gathered Deficit)
















Steadiness at starting of interval

$   (1,913)




$    3,942




$    1,117




$    1,727



Internet earnings

1,206




978




8,442




5,835



Money dividends declared

(537)




(440)




(2,081)




(1,724)



Share repurchases

(3,871)




(3,363)




(12,593)




(4,721)



Steadiness at finish of interval

$   (5,115)




$    1,117




$   (5,115)




$    1,117





















(1) 

Below the two-class technique, earnings per share is calculated utilizing internet earnings allocable to widespread shares, which is derived by lowering internet earnings by the earnings allocable to taking part securities.  Internet earnings allocable to widespread shares used within the primary and diluted earnings per share calculation had been $1,202 million for the three months ended January 28, 2022, and $973 million for the three months ended January 29, 2021.  Internet earnings allocable to widespread shares used within the primary and diluted earnings per share calculation had been $8,409 million for the fiscal yr ended January 28, 2022, and $5,811 million for the fiscal yr ended January 29, 2021.

Lowe’s Corporations, Inc.

Consolidated Statements of Complete Earnings (Unaudited)

In Hundreds of thousands, Besides Share Knowledge



Three Months Ended


Fiscal 12 months Ended


January 28, 2022


January 29, 2021


January 28, 2022


January 29, 2021


Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales

Internet earnings

$    1,206


5.65


$       978


4.81


$    8,442


8.77


$    5,835


6.51

International forex translation changes – internet
of tax

(82)


(0.38)


105


0.52


(4)



78


0.09

Money circulate hedges – internet of tax

53


0.25


5


0.02


109


0.11


(79)


(0.09)

Different

(1)


(0.01)


(1)



(5)


(0.01)


1


Different complete (loss)/revenue

(30)


(0.14)


109


0.54


100


0.10



Complete revenue

$    1,176


5.51


$    1,087


5.35


$    8,542


8.87


$    5,835


6.51

















Lowe’s Corporations, Inc.

Consolidated Steadiness Sheets (Unaudited)

In Hundreds of thousands, Besides Par Worth Knowledge









January 28, 2022


January 29, 2021

Property





Present property:





Money and money equivalents


$                    1,133


$                    4,690

Quick-term investments


271


506

Merchandise stock – internet


17,605


16,193

Different present property


1,051


937

Whole present property


20,060


22,326

Property, much less gathered depreciation


19,071


19,155

Working lease right-of-use property


4,108


3,832

Lengthy-term investments


199


200

Deferred revenue taxes – internet


164


340

Different property


1,038


882

Whole property


$                  44,640


$                  46,735






Liabilities and shareholders’ (deficit)/fairness





Present liabilities:





Present maturities of long-term debt


$                       868


$                    1,112

Present working lease liabilities


636


541

Accounts payable


11,354


10,884

Accrued compensation and worker advantages


1,561


1,350

Deferred income


1,914


1,608

Different present liabilities


3,335


3,235

Whole present liabilities


19,668


18,730

Lengthy-term debt, excluding present maturities


23,859


20,668

Noncurrent working lease liabilities


4,021


3,890

Deferred income – Lowe’s safety plans


1,127


1,019

Different liabilities


781


991

Whole liabilities


49,456


45,298






Shareholders’ (deficit)/fairness:





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



Frequent inventory, $0.50 par worth: Licensed – 5.6 billion shares; Issued and excellent – 670
million and 731 million shares, respectively


335


366

Capital in extra of par worth



90

(Gathered deficit)/retained earnings


(5,115)


1,117

Gathered different complete loss


(36)


(136)

Whole shareholders’ (deficit)/fairness


(4,816)


1,437

Whole liabilities and shareholders’ (deficit)/fairness


$                  44,640


$                  46,735






Lowe’s Corporations, Inc.

Consolidated Statements of Money Flows (Unaudited)

In Hundreds of thousands



Fiscal 12 months Ended


January 28, 2022


January 29, 2021

Money flows from working actions:




Internet earnings

$                        8,442


$                        5,835

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




Depreciation and amortization

1,882


1,594

Noncash lease expense

517


479

Deferred revenue taxes

135


(108)

Loss on property and different property – internet

34


139

Loss on extinguishment of debt


1,060

Share-based cost expense

230


155

Adjustments in working property and liabilities:




Merchandise stock – internet

(1,413)


(2,967)

Different working property

(23)


326

Accounts payable

466


3,211

Deferred income

413


512

Different working liabilities

(570)


813

Internet money offered by working actions

10,113


11,049





Money flows from investing actions:




Purchases of investments

(3,065)


(3,094)

Proceeds from sale/maturity of investments

3,293


2,926

Capital expenditures

(1,853)


(1,791)

Proceeds from sale of property and different long-term property

113


90

Different – internet

(134)


(25)

Internet money utilized in investing actions

(1,646)


(1,894)





Money flows from financing actions:




Internet change in industrial paper


(941)

Internet proceeds from issuance of debt

4,972


7,929

Compensation of debt

(2,118)


(5,618)

Proceeds from issuance of widespread inventory below share-based cost plans

132


152

Money dividend funds

(1,984)


(1,704)

Repurchases of widespread inventory

(13,012)


(4,971)

Different – internet

(6)


(38)

Internet money utilized in financing actions

(12,016)


(5,191)





Impact of trade price adjustments on money

(8)


10





Internet (lower)/improve in money and money equivalents

(3,557)


3,974

Money and money equivalents, starting of interval

4,690


716

Money and money equivalents, finish of interval

$                        1,133


$                        4,690





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

To offer extra transparency, the Firm has offered a comparability to the non-GAAP monetary measure of adjusted diluted earnings per share for the three months ended January 29, 2021.  This measure excludes the impression of a discrete merchandise, additional described beneath, not contemplated in Lowe’s Enterprise Outlook for the fourth quarter of fiscal 2020 to help analysts and buyers in understanding operational efficiency for the fourth quarter of fiscal 2020.

Fiscal 2020 Impacts
Throughout fiscal 2020, the Firm acknowledged monetary impacts from the next discrete merchandise, not contemplated within the Firm’s Enterprise Outlook for the fourth quarter:

  • Starting within the third quarter of fiscal 2019, the Firm started a strategic overview of its Canadian operations, and within the fourth quarter of fiscal 2019, the Firm introduced extra actions to enhance future efficiency and profitability of its Canadian operations. On account of this overview and associated actions, within the fourth quarter of fiscal 2020, the Firm acknowledged $12 million of pre-tax working prices associated to stock write-downs and different closing prices (Canada restructuring).

Adjusted diluted earnings per share shouldn’t be thought-about 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 tactic utilized by different corporations and is probably not comparable.

An in depth reconciliation between the Firm’s GAAP and non-GAAP monetary outcomes is proven beneath and obtainable on the Firm’s web site at ir.lowes.com.


Three Months Ended


January 29, 2021


Pre-Tax
Earnings


Tax


Internet
Earnings

Diluted earnings per share, as reported





$         1.32

Non-GAAP changes per share impacts






Canada restructuring

0.01



0.01

Adjusted diluted earnings per share





$         1.33

SOURCE Lowe’s Corporations, Inc.



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