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Lowe’s 1Q 2022 Sales Hindered by Cold Spring

Lowe’s 1Q 2022 Sales Hindered by Cold Spring

MOORESVILLE, N.C. — Lowe’s Companies, Inc. today reported net earnings of $2.3 billion, in line with prior-year results, and diluted earnings per share (EPS) of $3.51 for the quarter ended April 29, 2022, compared to diluted EPS of $3.21 in the first quarter of 2021.

Total sales for the first quarter were $23.7 billion compared to $24.4 billion in the first quarter of 2021, and comparable sales decreased 4.0%.  Comparable sales for the U.S. home improvement business decreased 3.8% for the first quarter.  Pro customer sales increased 20%.

“Our sales this quarter were in line with our expectations, excluding our outdoor seasonal categories that were impacted by unseasonably cold temperatures in April.  Because 75% of our customer base is DIY, our Q1 sales were disproportionately impacted by the cooler spring temperatures. Now that spring has finally arrived, we are pleased with the improved sales trends we are seeing in May,” commented Marvin R. Ellison, Lowe’s chairman, president and CEO. “This quarter we delivered over 65 basis points of operating margin improvement, driven by our Total Home strategy and the execution of our Perpetual Productivity Improvement or PPI initiatives. Despite some increased uncertainty in the macro environment, we remain confident in the outlook for the home improvement market and our ability to deliver operating margin expansion in 2022. I would like to thank our front-line associates for their ongoing commitment to our customers and our communities.”

Capital Allocation
The company continues to execute a disciplined capital allocation strategy to deliver long-term, sustainable shareholder value. During the quarter, the company repurchased approximately 19 million shares for $4.1 billion, and it paid $537 million in dividends.

The company is affirming its outlook for the operating results of Full Year 2022.

Full Year 2022 Outlook — a 53-week Year (comparisons to full year 2021 — a 52-week year)

  • Total sales of $97 billion to $99 billion, including the 53rd week
  • 53rd week expected to increase total sales by approximately $1.0 billion to $1.5 billion
  • Comparable sales expected to range from a decline of 1% to an increase of 1%
  • Gross margin rate up slightly compared to prior year
  • Depreciation and amortization of approximately $1.75 billion
  • Operating income as a percentage of sales (operating margin) of 12.8% to 13.0%
  • Interest expense of $1.0 to $1.1 billion
  • Effective income tax rate of approximately 25%
  • Diluted earnings per share of $13.10 to $13.60
  • Total share repurchases of approximately $12 billion
  • ROIC of over 36%
  • Capital expenditures of approximately $2 billion
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