MOORESVILLE, N.C. — Lowe’s Companies, Inc. today reported net earnings of $1.8 billion and diluted earnings per share (EPS) of $3.06 for the quarter ended Nov. 3, 2023, compared to diluted EPS of $0.25 in the third quarter of 2022, which included a pre-tax long-lived asset impairment of $2.1 billion related to its Canadian retail business. Excluding the impairment charge in the prior year, third quarter 2022 adjusted diluted EPS1 was $3.27.
Total sales for the quarter were $20.5 billion2. Comparable sales decreased 7.4%3 due to a decline in DIY discretionary spending, partially offset by positive Pro customer comp sales.
“In the third quarter, the company delivered strong operating performance and improved customer service despite a greater-than-expected pullback in DIY discretionary spending, particularly in bigger ticket categories. Given our 75% DIY mix, the DIY pressure disproportionately impacted our third quarter comp performance. At the same time, our investments in Pro continue to resonate, resulting in positive Pro comps again this quarter,” said Marvin R. Ellison, Lowe’s chairman, president and CEO. “As we look ahead, Lowe’s is committed to offering value and convenience this holiday season, helping our customers save time and money. I’d like to extend my appreciation to our hardworking front-line associates who continue to elevate the customer experience.”
During the quarter, Lowe’s opened one store and three Lowe’s Outlet stores. As of Nov. 3, 2023, Lowe’s operated 1,746 stores representing 194.9 million square feet of retail selling space.
Capital Allocation
The company continues to execute a disciplined capital allocation program to deliver long-term, sustainable shareholder value. During the quarter, the company repurchased approximately 7.3 million shares for $1.6 billion, and it paid $642 million in dividends.
¹Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures Reconciliation” section of this release for additional information, as well as reconciliations between the Company’s GAAP and non-GAAP financial results.
² Total third quarter sales includes an approximately $115 million headwind related to a timing shift in our fiscal calendar as we cycle over a 53-week year.
³ Comparable sales are based on comparison to weeks 28-40 in 2022.
Based on lower-than-expected DIY sales, the company is updating its outlook for the operating results of full year 2023.
Adjusted operating income, adjusted operating margin, adjusted effective income tax and adjusted diluted EPS are non-GAAP financial measures that exclude the impact and timing of the gain associated with the 2022 sale of the Canadian retail business, recorded in the first quarter. The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items (which may be significant) without unreasonable effort, including timing of adjustments associated with the sale of our Canadian retail business.
Full Year 2023 Outlook – a 52-week year (comparisons to full year 2022 – a 53-week year)
- Total sales of approximately $86 billion (previously $87 – $89 billion)
- Comparable sales expected to be down approximately -5% as compared to prior year (previously down -2% to -4%)
- Adjusted operating income as a percentage of sales (adjusted operating margin) of approximately 13.3% (previously 13.4% to 13.6%)
- Interest expense of approximately $1.4 billion (previously $1.5 billion)
- Adjusted effective income tax rate of approximately 25%
- Adjusted diluted earnings per share of approximately $13.00 (previously $13.20 to $13.60)
- Capital expenditures of up to $2 billion