Lowe’s Reviews Third Quarter 2021 Gross sales And Earnings Outcomes


MOORESVILLE, N.C., Nov. 17, 2021 /PRNewswire/ — Lowe’s Corporations, Inc. ( NYSE: LOW) at present reported web earnings of $1.9 billion and diluted earnings per share (EPS) of $2.73 for the quarter ended October 29, 2021 in comparison with web earnings of $692 million and diluted EPS of $0.91 within the third quarter of 2020.  Excluding fees within the prior-year interval associated to the extinguishment of debt, third quarter diluted EPS of $2.73 elevated 38% from adjusted diluted EPS of $1.98 within the third quarter of 20201.

Complete gross sales for the third quarter have been $22.9 billion in comparison with $22.3 billion within the third quarter of 2020, and comparable gross sales elevated 2.2%.  Comparable gross sales for the U.S. residence enchancment enterprise elevated 2.6% for the third quarter.

For the seventh consecutive quarter, 100% of Lowe’s shops earned a Successful Collectively profit-sharing bonus, leading to an anticipated whole payout of $138 million to front-line hourly associates. This cost is $70 million above the goal stage.

“Our momentum continued this quarter, with U.S. gross sales comps up practically 34% on a two-year foundation, as our Complete House technique is resonating with the Professional and DIY buyer alike.  Within the quarter, we drove over 16% development in Professional and 25% on Lowes.com.  We additionally delivered working margin enlargement by driving productiveness by means of disciplined operational execution and value administration,” commented Marvin R. Ellison, Lowe’s chairman, president and CEO.  “I wish to thank our front-line associates for his or her ongoing dedication to excellent customer support.  Wanting ahead, I stay assured in our capability to drive additional market share beneficial properties, working margin enlargement, and long-term worth for our shareholders.” 

Capital Allocation
With a disciplined deal with its strong capital allocation program, the Firm continues to create sustainable worth for its shareholders.  Through the quarter, the Firm repurchased 13.7 million shares for $2.9 billion and paid $563 million in dividends.  Given its better-than-expected efficiency, the Firm now plans to repurchase roughly $3 billion in shares within the fourth quarter, bringing the anticipated whole share repurchases for the 12 months to roughly $12 billion.  This incremental share repurchase is in step with the Firm’s long-term dedication to returning extra capital to shareholders.   

As of October 29, 2021, Lowe’s operated 1,973 residence enchancment and {hardware} shops in america and Canada representing 208 million sq. ft of retail promoting house, and it serviced roughly 230 dealer-owned shops.

The Firm delivered very sturdy monetary outcomes by means of the primary three quarters of 2021, with gross sales momentum persevering with into November.  Whereas the enterprise surroundings stays unsure, the Firm is as soon as once more elevating its outlook for the working outcomes of Full Yr Fiscal 2021.

Full Yr 2021 Monetary Outlook (comparisons to full 12 months 2020)

  • Income of roughly $95 billion, representing roughly 33% comparable gross sales development on a two-year foundation.
  • Gross margin price up barely, in comparison with prior 12 months.
  • Working earnings as a proportion of gross sales (working margin) of 12.4%.
  • Complete share repurchases of roughly $12 billion.

For Fiscal 2021, the Firm expects capital expenditures of as much as $2 billion.

A convention name to debate third quarter 2021 working outcomes is scheduled for at present, Wednesday, November 17, at 9:00 am ET.  The convention name will likely be out there by webcast and will be accessed by visiting Lowe’s web site at ir.lowes.com and clicking on Lowe’s Third Quarter 2021 Earnings Convention Name Webcast.  Supplemental slides will likely be out there 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 residence enchancment firm serving roughly 20 million clients every week in america and Canada. With fiscal 12 months 2020 gross sales of practically $90 billion, Lowe’s and its associated companies function or service greater than 2,200 residence enchancment and {hardware} shops and make use of over 300,000 associates. Based mostly in Mooresville, N.C., Lowe’s helps the communities it serves by means of applications targeted on creating protected, reasonably priced housing and serving to to develop the subsequent era of expert commerce consultants. For extra info, go to Lowes.com.

Disclosure Relating to Ahead-Wanting Statements

This press launch contains “forward-looking statements” inside the which means of the Personal Securities Litigation Reform Act of 1995.  Statements together with phrases comparable to “consider”, “count on”, “anticipate”, “plan”, “want”, “venture”, “estimate”, “intend”, “will”, “ought to”, “may”, “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, goals, enterprise outlook, priorities, gross sales development, shareholder worth, capital expenditures, money flows, the housing market, the house enchancment business, demand for services, share repurchases, Lowe’s strategic initiatives, together with these referring to 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 may give no assurance that they are going to show to be right.  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 capability 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, comparable to the speed of unemployment, rate of interest and foreign money fluctuations, gasoline and different power prices, slower development in private earnings, modifications in client spending, modifications within the price of housing turnover, the supply of client credit score and of mortgage financing, modifications in commodity costs, commerce coverage modifications or extra tariffs, outbreaks of public well being crises, such because the COVID-19 pandemic, availability and value of products from suppliers, and different components that may negatively have an effect on our clients. 

Buyers and others ought to rigorously contemplate the foregoing components 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 Kind 10-Okay and as could also be up to date occasionally in Merchandise 1A in our quarterly experiences on Kind 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 regulation.

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.

Lowe’s Corporations, Inc.

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

In Thousands and thousands, Besides Per Share and Proportion Knowledge



Three Months Ended


9 Months Ended


October 29, 2021


October 30, 2020


October 29, 2021


October 30, 2020

Present Earnings

Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales

Internet gross sales

$

22,918



100.00



$

22,309



100.00



$

74,911



100.00



$

69,286



100.00


Value of gross sales

15,331



66.90



15,009



67.28



49,882



66.59



46,170



66.64


Gross margin

7,587



33.10



7,300



32.72



25,029



33.41



23,116



33.36


Bills:
















Promoting, basic and administrative

4,373



19.08



4,770



21.38



13,559



18.10



13,985



20.18


Depreciation and amortization

425



1.85



355



1.59



1,226



1.64



1,008



1.46


Working earnings

2,789



12.17



2,175



9.75



10,244



13.67



8,123



11.72


Curiosity – web

223



0.97



221



0.99



650



0.86



644



0.93


Loss on extinguishment of debt





1,060



4.75







1,060



1.53


Pre-tax earnings

2,566



11.20



894



4.01



9,594



12.81



6,419



9.26


Earnings tax provision

670



2.93



202



0.91



2,359



3.15



1,562



2.25


Internet earnings

$

1,896



8.27



$

692



3.10



$

7,235



9.66



$

4,857



7.01


































Weighted common widespread shares excellent –
   primary

690





752





704





753




Primary earnings per widespread share (1)

$

2.74





$

0.92





$

10.23





$

6.42




Weighted common widespread shares excellent –
   diluted

692





754





706





754




Diluted earnings per widespread share (1)

$

2.73





$

0.91





$

10.21





$

6.41




Money dividends per share

$

0.80





$

0.60





$

2.20





$

1.70




















Retained Earnings/(Accrued Deficit)
















Steadiness at starting of interval

$

(460)





$

4,134





$

1,117





$

1,727




Internet earnings

1,896





692





7,235





4,857




Money dividends declared

(551)





(452)





(1,544)





(1,284)




Share repurchases

(2,798)





(432)





(8,721)





(1,358)




Steadiness at finish of interval

$

(1,913)





$

3,942





$

(1,913)





$

3,942




















(1) 

Underneath the two-class technique, earnings per share is calculated utilizing web earnings allocable to widespread shares, which is derived by decreasing web 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 have been $1,889 million for the three months ended October 29, 2021, and $689 million for the three months ended October 30, 2020.  Internet earnings allocable to widespread shares used within the primary and diluted earnings per share calculation have been $7,207 million for the 9 months ended October 29, 2021, and $4,837 million for the 9 months ended October 30, 2020.

Lowe’s Corporations, Inc.

Consolidated Statements of Complete Earnings (Unaudited)

In Thousands and thousands, Besides Proportion Knowledge



Three Months Ended


9 Months Ended


October 29, 2021


October 30, 2020


October 29, 2021


October 30, 2020


Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales


Quantity


% Gross sales

Internet earnings

$

1,896



8.27



$

692



3.10



$

7,235



9.66



$

4,857



7.01


Overseas foreign money translation changes – web
of tax

19



0.08



18



0.08



78



0.10



(27)



(0.04)


Money move hedges – web of tax

41



0.18



24



0.11



56



0.07



(84)



(0.12)


Different

(1)





(2)



(0.01)



(4)





2




Different complete earnings/(loss)

59



0.26



40



0.18



130



0.17



(109)



(0.16)


Complete earnings

$

1,955



8.53



$

732



3.28



$

7,365



9.83



$

4,748



6.85


















Lowe’s Corporations, Inc.

Consolidated Steadiness Sheets (Unaudited)

In Thousands and thousands, Besides Par Worth Knowledge










October 29, 2021


October 30, 2020


January 29, 2021

Belongings







Present property:







Money and money equivalents


$

6,121



$

8,249



$

4,690


Quick-term investments


552



1,852



506


Merchandise stock – web


16,685



15,712



16,193


Different present property


1,491



1,103



937


Complete present property


24,849



26,916



22,326


Property, much less amassed depreciation (1)


18,925



18,798



19,155


Working lease right-of-use property


4,161



3,823



3,832


Lengthy-term investments


213



202



200


Deferred earnings taxes – web


220



241



340


Different property (1)


1,032



900



882


Complete property


$

49,400



$

50,880



$

46,735









Liabilities and shareholders’ (deficit)/fairness







Present liabilities:







Quick-term borrowings


$

1,000



$



$


Present maturities of long-term debt


1,352



609



1,112


Present working lease liabilities


573



530



541


Accounts payable


11,334



12,759



10,884


Accrued compensation and worker advantages


1,353



1,117



1,350


Deferred income


1,954



1,614



1,608


Different present liabilities


3,268



2,935



3,235


Complete present liabilities


20,834



19,564



18,730


Lengthy-term debt, excluding present maturities


23,881



21,185



20,668


Noncurrent working lease liabilities


4,136



3,907



3,890


Deferred income – Lowe’s safety plans


1,119



1,007



1,019


Different liabilities


1,006



1,144



991


Complete liabilities


50,976



46,807



45,298









Shareholders’ (deficit)/fairness:







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







Widespread inventory, $0.50 par worth: Approved – 5.6 billion shares; Issued
and excellent – 686 million, 752 million, and 731 million shares,
respectively


343



376



366


Capital in extra of par worth






90


(Accrued deficit)/retained earnings


(1,913)



3,942



1,117


Accrued different complete loss


(6)



(245)



(136)


Complete shareholders’ (deficit)/fairness


(1,576)



4,073



1,437


Complete liabilities and shareholders’ (deficit)/fairness


$

49,400



$

50,880



$

46,735









(1)

Efficient for the 12 months ending January 29, 2021, extra property quantities beforehand reported in different property have been reclassified to property, much less amassed depreciation.  The consolidated steadiness sheet as of October 30, 2020, has been revised to adapt with present presentation. 

Lowe’s Corporations, Inc.

Consolidated Statements of Money Flows (Unaudited)

In Thousands and thousands



9 Months Ended


October 29, 2021


October 30, 2020

Money flows from working actions:




Internet earnings

$

7,235



$

4,857


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




Depreciation and amortization

1,388



1,152


Noncash lease expense

383



356


Deferred earnings taxes

96



5


Loss on property and different property – web

25



114


Loss on extinguishment of debt



1,060


Share-based cost expense

169



107


Adjustments in working property and liabilities:




Merchandise stock – web

(446)



(2,545)


Different working property

(130)



147


Accounts payable

436



5,099


Deferred income

444



508


Different working liabilities

(421)



625


Internet money supplied by working actions

9,179



11,485






Money flows from investing actions:




Purchases of investments

(2,325)



(2,548)


Proceeds from sale/maturity of investments

2,261



1,032


Capital expenditures

(1,256)



(1,172)


Proceeds from sale of property and different long-term property

94



60


Different – web

(134)



(24)


Internet money utilized in investing actions

(1,360)



(2,652)






Money flows from financing actions:




Internet change in business paper



(941)


Internet proceeds from issuance of debt

4,972



7,929


Compensation of debt

(595)



(5,582)


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

72



102


Money dividend funds

(1,433)



(1,252)


Repurchases of widespread inventory

(8,999)



(1,528)


Different – web

(408)



(32)


Internet money utilized in financing actions

(6,391)



(1,304)






Impact of trade price modifications on money

3



4






Internet enhance in money and money equivalents

1,431



7,533


Money and money equivalents, starting of interval

4,690



716


Money and money equivalents, finish of interval

$

6,121



$

8,249






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

To offer extra transparency, the Firm has introduced comparisons to the non-GAAP monetary measure of adjusted diluted earnings per share for the three months ended October 30, 2020.  This measure excludes the impression of discrete gadgets, additional described beneath, not contemplated in Lowe’s Enterprise Outlook for the third quarter of fiscal 2020 to help analysts and buyers in understanding operational efficiency for the third quarter of fiscal 2020.

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

  • Within the third quarter of fiscal 2020, the Firm acknowledged a $1.1 billion loss on extinguishment of debt in reference to the money tender gives on an mixture principal quantity of $3.0 billion in excellent notes (Loss on extinguishment of debt).
  • Starting within the third quarter of fiscal 2019, the Firm started a strategic assessment 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 assessment and associated actions, within the third quarter of fiscal 2020, the Firm acknowledged $13 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 of an alternative choice to, 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 might not be comparable.

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


Three Months Ended


(Unaudited)


October 30, 2020


Pre-Tax
Earnings


Tax


Internet
Earnings

Diluted earnings per share, as reported





$

0.91


Non-GAAP changes per share impacts






Loss on extinguishment of debt

1.40



(0.35)



1.05


Canada restructuring

0.02





0.02


Adjusted diluted earnings per share





$

1.98


SOURCE Lowe’s Corporations, Inc.

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