Q3 2024 Lowe's Companies Inc Earnings Call Transcript
Key Points
- Lowe's Companies Inc (LOW) reported third quarter sales of $20.2 billion, with results modestly better than expected, driven by strong Pro and online sales.
- Pro sales saw high single-digit positive comps, attributed to investments in serving small to medium-sized Pro customers and enhancing the Pro shopping experience.
- Online sales grew by 6%, with increased online conversion and traffic, including a double-digit increase in traffic on the Lowe's mobile app.
- The MyLowe's Rewards loyalty program, launched in March, is showing promising results in key performance metrics like repeat purchases and average order value.
- Lowe's Companies Inc (LOW) is investing in its Total Home Strategy to position the company for long-term growth and sustainable market share gains, anticipating a home improvement market recovery.
- Comparable sales were down 1.1% in the third quarter, with DIY discretionary bigger ticket projects remaining soft.
- The macro environment remains challenging, with high interest rates and inflation putting pressure on consumer affordability and housing turnover at near 30-year lows.
- Gross margin was impacted by storm-related pressures, including mix pressure from lower-margin products and incremental transportation costs.
- Adjusted SG&A delevered 86 basis points versus prior year, partly due to direct storm-related expenses and incremental labor costs.
- The outlook for fiscal 2024 includes a decline in comparable sales by 3% to 3.5%, reflecting ongoing pressure in DIY discretionary projects and macroeconomic challenges.
Good morning, everyone. Welcome to Lowe's Companies third quarter 2024 earnings conference call. My name is Rob, and I'll be your operator for today's call. As a reminder, this conference is being recorded. I will now turn the call over to Kate Pearlman, Vice President of Investor Relations and Treasurer.
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Thank you, and good morning. Here with me today are Marvin Ellison, Chairman and Chief Executive Officer; Bill Boltz, our Executive Vice President, Merchandising; Joe McFarland, our Executive Vice President, Stores; and Brandon Sink, our Executive Vice President and Chief Financial Officer.
I would like to remind you that our notice regarding forward-looking statements is included in our press release this morning, which can be found on Lowe's Investor Relations website. During this call, we will be making comments that are forward-looking, including our expectations for fiscal 2024.
Actual results may differ materially
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