On November 21, 2023, Lowe's Companies Inc (LOW, Financial) released its 8-K filing, announcing its financial results for the third quarter of 2023. The company reported a decrease in comparable sales by 7.4%, with a diluted earnings per share (EPS) of $3.06. This EPS figure marks a significant increase from the $0.25 reported in the third quarter of 2022, which included a substantial impairment charge related to Lowe's Canadian retail business. Excluding this charge, the adjusted diluted EPS for the third quarter of 2022 was $3.27.
Financial Performance and Challenges
Lowe's faced a decline in DIY discretionary spending, which was partially offset by positive sales from professional (Pro) customers. The company's total sales for the quarter stood at $20.5 billion, with the noted decline in comparable sales. Lowe's chairman, president, and CEO, Marvin R. Ellison, acknowledged the impact of reduced DIY spending on the company's performance but also highlighted the positive response to investments in the Pro segment.
Operational Highlights and Store Expansion
During the quarter, Lowe's opened one new store and three Lowe's Outlet stores, bringing its total retail selling space to 194.9 million square feet across 1,746 stores. The company's disciplined capital allocation strategy included significant share repurchases and dividend payments, reinforcing its commitment to delivering shareholder value.
Updated Full-Year 2023 Outlook
In light of the lower-than-expected DIY sales, Lowe's has updated its full-year 2023 outlook. The company now anticipates total sales of approximately $86 billion, a decrease from the previously projected range of $87 to $89 billion. Comparable sales are expected to be down around 5%, with an adjusted operating margin of approximately 13.3%. The adjusted diluted EPS is forecasted to be around $13.00, down from the prior estimate of $13.20 to $13.60. Capital expenditures are projected to be up to $2 billion.
Conference Call and Additional Information
A conference call discussing the third quarter 2023 results was scheduled for the same day as the announcement. Lowe's continues to serve its customers through its extensive store network and is committed to community support and the development of skilled trade experts.
Investors and analysts are encouraged to review the detailed financial tables and reconciliations provided in the earnings release, as well as the forward-looking statements that outline potential risks and uncertainties that could affect future results. Lowe's remains transparent in its financial reporting, providing both GAAP and non-GAAP measures to aid in the understanding of its operational performance.
For a more detailed analysis of Lowe's financial results, including the impact of non-GAAP financial measures, please visit the Investor Relations section of Lowe's website at ir.lowes.com.
Explore the complete 8-K earnings release (here) from Lowe's Companies Inc for further details.
