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LOW · LOWES COMPANIES INC

35 filings

10-K

LOW 10-K Annual Reports

LOWES COMPANIES INC - 35 annual reports

Filing record · 2016–202610-K1110-Q328-K126

2026
LOWES COMPANIES INC Annual Report, Year Ended Jan 30, 2026
Lowe's Companies, Inc. reported net sales of $86.3 billion for fiscal year 2025, an increase of 3.1% over fiscal year 2024, driven by acquisitions and a slight increase in comparable average ticket, partially offset by a decrease in customer transactions. Net earnings for fiscal year 2025 were $6.7 billion, a decrease of 4.4% compared to the prior year, resulting in diluted earnings per share of $11.85. The company experienced increased selling, general, and administrative expenses as a percentage of sales, partly due to transaction costs and amortization related to the acquisitions of Foundation Building Materials (FBM) and Artisan Design Group (ADG). Despite these impacts, Lowe's continued to focus on its "Total Home" strategy, emphasizing Pro customer penetration, e-commerce acceleration, and home services expansion, positioning for long-term value creation.
Mar 23, 2026
2025
LOWES COMPANIES INC Annual Report, Year Ended Jan 31, 2025
Lowe's Companies, Inc. reported a decline in net sales and net earnings for fiscal year 2024, with net sales decreasing by 3.1% to $83.7 billion and net earnings falling by 10.0% to $7.0 billion. This performance was primarily attributed to macroeconomic factors such as ongoing inflation and higher interest rates, which negatively impacted discretionary spending by DIY customers. Despite these challenges, Lowe's saw positive comparable sales growth in Building Materials and improved Pro customer penetration, reflecting successful investments in Pro offerings, inventory, and delivery services. The company continues to execute its updated 'Total Home' strategy, focusing on Pro customer penetration, accelerating online sales, expanding home services, creating a loyalty ecosystem, and increasing space productivity. Lowe's is investing in its omnichannel capabilities and supply chain to enhance customer experience and delivery efficiency. The company also maintained a strong financial position, with $1.8 billion in cash and cash equivalents and $4.0 billion in undrawn credit facility capacity as of January 31, 2025. Shareholder returns remain a priority, with significant share repurchases and consistent dividend payments.
Mar 24, 2025
2024
LOWES COMPANIES INC Annual Report, Year Ended Feb 2, 2024
Lowe's Companies, Inc. reported a decrease in net sales for fiscal year 2023 to $86.4 billion, a 11.0% drop from the previous year, attributed to the sale of its Canadian retail business and a 4.7% decrease in comparable sales. Despite the sales decline, net earnings increased by 20.0% to $7.7 billion, and diluted earnings per share rose to $13.20, largely due to cost management initiatives and favorable adjustments related to the Canadian business sale in the prior year. The company continues to navigate macroeconomic pressures affecting DIY customer demand, particularly for larger ticket items, while showing positive comparable sales growth in the Pro customer segment, driven by strategic investments in Pro offerings and loyalty programs. Lowe's remains focused on its "Total Home" strategy, emphasizing an omnichannel experience, Pro customer penetration, installation services, localization, and assortment elevation. The company generated strong operating cash flows of $8.1 billion and returned $8.8 billion to shareholders through $6.3 billion in share repurchases and $2.5 billion in dividends. Management is committed to efficient capital allocation and productivity improvements (PPI) to drive long-term shareholder value amidst near-term market uncertainty. The company also highlighted its ongoing commitment to human capital, community investment, and sustainability goals, including a net-zero emissions target by 2050.
Mar 25, 2024
2023
LOWES COMPANIES INC Annual Report, Year Ended Feb 3, 2023
Lowe's Companies, Inc. reported net sales of $97.1 billion for fiscal year 2022, a slight increase of 0.8% driven by an extra week in the fiscal year, as comparable sales saw a minor decrease of 0.9%. The company experienced a significant drop in net earnings by 23.8% to $6.4 billion, largely due to $2.5 billion in pre-tax costs associated with the sale of its Canadian retail business. Excluding these one-time costs, adjusted diluted earnings per share saw a positive increase of 14.7%. The company continued to focus on its "Total Home" strategy, emphasizing enhancements for Pro customers with the launch of the MVPs Pro Rewards & Partnership Program, and made significant progress in transforming its supply chain network and expanding market-based delivery models. Financially, Lowe's demonstrated strong cash flow from operations of $8.6 billion and returned substantial capital to shareholders through $14.1 billion in share repurchases and $2.4 billion in dividends. The company has a robust liquidity position with $1.3 billion in cash and $3.5 billion in undrawn credit facilities. Looking ahead, Lowe's plans to invest up to $2.0 billion in capital expenditures for fiscal year 2023, with a focus on existing store improvements and strategic initiatives, while maintaining its commitment to associate well-being and community investment.
Mar 27, 2023
2022
LOWES COMPANIES INC Annual Report, Year Ended Jan 28, 2022
Lowe's Companies, Inc. reported a robust fiscal year 2021 with net sales reaching $96.3 billion, an increase of 7.4% over the prior year. This growth was primarily driven by a 6.9% increase in comparable sales, fueled by an 11.1% rise in average ticket, partially offset by a 4.2% decrease in customer transactions. Net earnings saw a significant increase of 44.7% to $8.4 billion, with diluted earnings per share growing by 55.3% to $12.04. The company generated substantial cash flow from operations, totaling $10.1 billion, which supported $1.9 billion in capital expenditures and a significant return of capital to shareholders through $13.1 billion in share repurchases and $2.0 billion in dividends. The company's "Total Home" strategy continues to show momentum, with improvements in product offerings, customer experience, and omnichannel capabilities. Lowe's focused on enhancing its Pro customer segment through improved inventory, store layouts, and expanded product assortments. Online enhancements included improved website functionality and expanded on-trend inventory. The company also highlighted its ongoing commitment to operational efficiency through "Perpetual Productivity Improvement" (PPI) initiatives, including the launch of a new store inventory management system to improve associate efficiency and customer service. Looking ahead, Lowe's plans to further enhance its omnichannel capabilities in 2022 by expanding its online assortment, improving user experience with updated visualization tools, and optimizing its fulfillment network. Despite economic uncertainties such as rising interest rates and inflation, Lowe's expressed confidence in the home improvement industry's outlook and its strategic positioning to capture market share.
Mar 21, 2022
2021
LOWES COMPANIES INC Annual Report, Year Ended Jan 29, 2021
Lowe's Companies, Inc. reported strong performance in its fiscal year 2020, which ended January 29, 2021. The company experienced a significant increase in net sales, up 24.2% to $89.6 billion, largely driven by a substantial 26.1% rise in comparable sales. This growth was fueled by a combination of increased customer transactions and a higher average ticket price, indicating robust consumer demand for home improvement products and services, particularly during the COVID-19 pandemic where the home became central to consumers' lives. Net earnings saw a considerable increase of 36.3% to $5.8 billion, with diluted earnings per share rising to $7.75. The company also demonstrated strong operational cash flow, reinvesting in its business and returning capital to shareholders through share repurchases and dividends. The company has been actively executing its "Total Home" strategy, focusing on enhancing its omni-channel capabilities, improving customer engagement, and growing market share, especially with the Pro customer segment. Significant investments were made in supply chain transformation and store modernization, including a major U.S. Stores Reset to improve the shopping experience and product localization. Lowe's also responded to the COVID-19 pandemic by prioritizing associate and customer safety, providing financial support to employees, and contributing to community relief efforts. The company's strategic initiatives and adaptable business model appear to have positioned it well to navigate market uncertainties and capitalize on consumer trends.
Mar 22, 2021
2020
LOWES COMPANIES INC Annual Report, Year Ended Jan 31, 2020
Lowe's Companies, Inc. (LOW) reported net sales of $72.1 billion for the fiscal year ended January 31, 2020, marking a 1.2% increase from the previous year. This growth was primarily driven by a 2.6% increase in comparable sales, which benefited from a 2.1% rise in average ticket and a 0.5% increase in transactions. The company demonstrated a significant improvement in profitability, with net earnings rising by 85.0% to $4.3 billion and diluted earnings per share increasing to $5.49 from $2.84 in the prior year. This earnings boost was partly attributable to the strategic actions taken to streamline operations, including exits from Mexico and Orchard Supply Hardware businesses, and store rationalizations in Canada, which incurred substantial one-time charges but positioned the company for future efficiency. Lowe's continued its commitment to shareholder returns, repurchasing $4.3 billion in stock and paying $1.6 billion in dividends during the fiscal year. The company also made strategic investments in its infrastructure, focusing on merchandising excellence, supply chain transformation, operational efficiency, and enhanced customer engagement. Despite facing headwinds such as tariff pressures impacting gross margin, Lowe's made progress on its multi-year transformation, aiming to build a robust omni-channel ecosystem. The company's outlook for the upcoming year included an approximately $1.6 billion capital expenditure forecast, emphasizing store investments and strategic initiatives.
Mar 23, 2020
2019
LOWES COMPANIES INC Annual Report, Year Ended Feb 1, 2019
Lowe's Companies, Inc. reported net sales of $71.3 billion for the fiscal year ended February 1, 2019, marking a 3.9% increase compared to the prior year, primarily driven by a 2.4% rise in comparable sales and the adoption of new revenue recognition standards. However, net earnings saw a significant decline of 32.9% to $2.3 billion, largely due to substantial pre-tax charges totaling $1.1 billion related to strategic reassessments, including a $952 million goodwill impairment charge for its Canadian operations. The company also completed significant leadership transitions during the fiscal year, appointing a new CEO and Chairman. Despite a challenging year marked by restructuring and impairments, Lowe's is focused on future growth through key initiatives such as merchandising excellence, supply chain transformation, operational efficiency, and intensified customer engagement, with a particular emphasis on winning the Pro customer segment. The company returned $4.5 billion to shareholders through share repurchases and dividends, underscoring its commitment to capital allocation.
Apr 2, 2019
2018
LOWES COMPANIES INC Annual Report, Year Ended Feb 2, 2018
This 10-K filing for Lowe's Companies, Inc. for the fiscal year ended February 2, 2018, highlights a year of solid sales growth driven by comparable store sales increases and strategic acquisitions, including RONA and Maintenance Supply Headquarters. The company demonstrated improved profitability with a notable increase in net earnings and diluted earnings per share. Lowe's continued its focus on enhancing its omni-channel capabilities, investing in technology and infrastructure to better serve its diverse customer base, including DIYers and Pro customers. Key financial maneuvers included significant share repurchases and dividend payments, demonstrating a commitment to returning capital to shareholders. The company also navigated changes in tax legislation, adjusting its financial outlook and strategies accordingly. Management expressed confidence in future liquidity and highlighted strategic priorities for growth, including leveraging analytics, expanding fulfillment options, and enhancing the Pro and DIFM customer experiences, positioning Lowe's as an omni-channel project authority.
Apr 2, 2018
2017
LOWES COMPANIES INC Annual Report, Year Ended Feb 3, 2017
Lowe's Companies, Inc. operates as the world's second-largest home improvement retailer, with a significant presence across North America. The company's 2017 10-K filing highlights its strategic acquisition of RONA inc. in May 2016, which substantially expanded its Canadian footprint and diversified its store formats. While the report indicates strong net sales growth driven by comparable sales increases and the RONA acquisition, it also points to ongoing investments in omni-channel capabilities and customer experience to adapt to evolving consumer behavior. Financially, Lowe's demonstrated robust performance with increased net sales and earnings. The company continues to prioritize returning capital to shareholders through share repurchases and dividends. However, investors should note potential risks related to the rapidly evolving retail landscape, cybersecurity threats, and the successful integration of acquired businesses like RONA. Management's outlook for the home improvement industry remains positive, supported by favorable macroeconomic indicators.
Apr 4, 2017
2016
LOWES COMPANIES INC Annual Report, Year Ended Jan 29, 2016
Lowe's Companies, Inc.'s 2016 10-K report highlights a year of solid sales growth, with net sales increasing by 5.1% to $59.1 billion. This growth was driven by a 4.8% increase in comparable sales, attributed to both a higher average ticket price and more transactions. Despite this top-line strength, net earnings saw a slight decline of 5.6% to $2.5 billion. This decrease was primarily due to a significant $530 million non-cash impairment charge related to the company's decision to exit the Australian home improvement market. Excluding the Australian venture's impact, adjusted net income rose by 14.0%, demonstrating the underlying health of the business. The company continued its commitment to returning capital to shareholders, repurchasing $3.8 billion in stock and paying $957 million in dividends. Lowe's is actively pursuing strategic growth initiatives, including a pending acquisition of Canadian retailer RONA Inc., signaling a focus on expanding its international presence and strengthening its position in key markets. The company remains optimistic about the home improvement industry's outlook for 2016, expecting continued growth supported by a strengthening economy and housing market.
Mar 29, 2016
2015
LOWES COMPANIES INC Annual Report, Year Ended Jan 30, 2015
Lowe's Companies, Inc. filed its 10-K for the fiscal year ending January 29, 2015, positioning itself as the world's second-largest home improvement retailer with 1,840 stores across North America. The company serves both do-it-yourself (DIY) homeowners and professional (Pro) customers, operating in a broad home improvement market estimated at $690 billion in 2014. The report highlights positive economic indicators such as projected growth in real disposable income, a declining unemployment rate, and expected increases in home prices and housing turnover, suggesting a moderately improving consumer demand for home improvement products and services. Financially, Lowe's demonstrated growth, with net sales increasing by 5.3% to $56.2 billion and net earnings rising by 18.0% to $2.7 billion compared to the prior year. The company is actively returning capital to shareholders through significant share repurchases ($3.9 billion in 2014) and dividend payments ($822 million in 2014). Strategic priorities include optimizing the business model through an enhanced Sales & Operations Planning process, developing customer experience design capabilities, and improving relevance with the Pro customer. Lowe's is also investing in becoming an omni-channel retailer, allowing customers to engage and purchase across various channels.
Mar 31, 2015
2014
LOWES COMPANIES INC Annual Report, Year Ended Jan 31, 2014
Lowe's Companies, Inc. reported strong performance for the fiscal year ended January 31, 2014, with net sales increasing by 5.7% to $53.4 billion and net earnings up 16.7% to $2.3 billion. This growth was driven by a 4.8% increase in comparable sales, reflecting both higher average ticket prices and an increase in customer transactions. The company attributes this success to strategic initiatives focused on enhancing retail relevance, including Value Improvement and Product Differentiation, along with an investment in store labor to improve customer service during peak hours. Looking ahead to fiscal year 2014, Lowe's anticipates continued sales growth, supported by improving economic indicators such as projected increases in real disposable personal income and a declining unemployment rate. The company plans to focus on optimizing its business model, with key priorities including improved seasonal planning, enhancing its product and service offering for the Pro customer segment, and further developing customer experience design capabilities. Lowe's is also committed to returning capital to shareholders through significant share repurchase programs and dividends.
Mar 31, 2014
2013
LOWES COMPANIES INC Annual Report, Year Ended Feb 1, 2013
Lowe's Companies, Inc. (LOW) filed its 2013 10-K report, detailing its operations as the world's second-largest home improvement retailer with 1,754 stores across North America. The report highlights the company's focus on enhancing customer experience through technology upgrades, a refined sales culture, and improved IT infrastructure, aiming to make home improvement projects seamless for both DIY and professional customers. The company navigated a slowly recovering economic environment, noting early signs of improvement in housing market metrics like turnover and home prices. Despite these positive indicators, Lowe's emphasized a continued balance between long-term growth strategies and near-term performance optimization, including maintaining adequate liquidity. Strategic initiatives like "Value Improvement" and "Product Differentiation" were central to their efforts in 2012, focusing on localized product assortments and highlighting innovative products to drive sales and improve margins.
Apr 2, 2013
2012-A
LOWES COMPANIES INC Annual Report (Amendment), Year Ended Feb 3, 2012
This filing is an amendment (10-K/A) to Lowe's Companies Inc.'s previously filed 2011 Annual Report (10-K). The amendment's primary purpose is to correct a technical error in the original filing's Interactive Data File (XBRL). Specifically, a value related to non-cancelable commitments due in 2012 was incorrectly reported as $5 million, and this amendment corrects it to $590 million. Investors should note that this amendment does not introduce new business information or alter the overall financial performance as presented in the original 10-K. It is a clarification of data presentation within the XBRL exhibit.
Apr 10, 2012
2012
LOWES COMPANIES INC Annual Report, Year Ended Feb 3, 2012
Lowe's Companies (LOW) reported fiscal 2011, a 53-week year ended February 3, 2012, with net sales of $50.2 billion, up 2.9% from $48.8 billion, while comparable store sales were flat. Net earnings fell 8.5% to $1.84 billion from $2.01 billion, and diluted EPS was $1.43 versus $1.42 in 2010. The extra week contributed about 1.6 points to sales growth. Gross margin compressed 58 basis points to 34.56%, driven by the 5% credit-card discount, everyday low pricing, and higher fuel costs. Operating (EBIT) margin fell 76 basis points to 6.53%, largely due to $388 million in long-lived asset impairments and store closing charges, which pressured SG&A. Management is shifting from store expansion toward maximizing asset productivity and a seamless multi-channel model. Online sales grew about 70% year over year, and Lowe's closed 27 underperforming stores and cut planned openings in half, to roughly 10 in 2012. The balance sheet shows more leverage. Total debt rose to about $7.6 billion, and the debt-to-equity-plus-debt ratio climbed to 31.6% from 26.6%, as the company issued $1.0 billion of notes in November 2011 while repurchasing $2.9 billion of stock. Shareholder equity declined to $16.5 billion from $18.1 billion because buybacks exceeded retained earnings. Operating cash flow improved to $4.35 billion from $3.85 billion. Management guided fiscal 2012 total sales growth of 1% to 2%, comparable store sales growth of 1% to 3%, and diluted EPS of $1.75 to $1.85. Note that the 2012 guidance is based on a 52-week year compared with 53 weeks in 2011, and the S&P credit rating carries a negative outlook. For investors, the central question is whether the strategic reset and multi-channel investments (IT spending of $841 million in 2011) can restore margins and comparable sales growth while the company continues large share repurchases funded partly by debt. The company has a $4.5 billion remaining buyback authorization that it expects to use by the end of fiscal 2012.
Apr 2, 2012
2011
LOWES COMPANIES INC Annual Report, Year Ended Jan 28, 2011
Lowe's Companies (LOW) closed fiscal 2010 (year ended January 28, 2011) with net sales up 3.4% to $48.8 billion, its first comparable store sales increase (+1.3%) since 2005, following a 6.7% decline in 2009. Gross margin expanded 28 basis points to 35.14%, driven by better seasonal sell-through, more competitive pricing zones (from under 90 to over 210), and Base Price Optimization. Operating margin (EBIT) rose 70 basis points to 7.29%, and net earnings grew 12.7% to $2.01 billion, or $1.42 diluted EPS versus $1.21 in 2009. Management characterized the home improvement market as moderately improving but still constrained by high unemployment, weak home prices, and low housing turnover, and guided to roughly 5% total sales growth and 1% to 2% comparable store sales growth for 2011, with EPS of $1.60 to $1.72 for fiscal 2011. Balance sheet and capital allocation shifted meaningfully during the year. Lowe's repurchased $2.6 billion of stock (about 111.7 million shares) and issued $2.0 billion of new unsecured notes, pushing long-term debt to $6.5 billion from $4.5 billion and the debt-to-capital ratio to 26.6% from 21.0%. Operating cash flow of $3.85 billion was down from $4.05 billion, mainly on working capital and tax payments, and the company retained a $2.4 billion repurchase authorization that it expects to use by the end of fiscal 2011. Credit ratings were stable (S&P A, Moody's A1), and the company stated it does not expect a downgrade. Key risks remain in the 10-K's risk factors, including sensitivity to the broader economy and housing market, competitive pricing pressure, execution risk on its Installed Sales, PSE, and technology initiatives, and expansion in Canada, Mexico, and the Australian joint venture with Woolworths. The company reported no material legal proceedings and an effective internal control framework, audited by Deloitte & Touche LLP with unqualified opinions.
Mar 29, 2011
2010-A2
LOWES COMPANIES INC Annual Report (Amendment), Year Ended Jan 29, 2010
This 10-K/A filing from Lowe's Companies, Inc. for the period ending January 28, 2010, primarily references the company's 2009 Annual Report to Shareholders for detailed financial statements, including the Consolidated Statements of Earnings, Balance Sheets, Shareholders' Equity, and Cash Flows. The filing also includes a Schedule II detailing valuation and qualifying accounts and reserves, such as reserves for obsolete inventory, inventory shrinkage, sales returns, and deferred tax valuation allowance, along with the independent auditor's report from Deloitte & Touche LLP. A comprehensive list of exhibits, including charter and bylaw amendments, various indentures and credit agreements, and numerous executive compensation and benefit plans, are incorporated by reference. For investors, the key takeaway is that this filing serves as an amendment and incorporation by reference of previously issued financial statements and disclosures. The financial health and operational performance are primarily detailed in the referenced 2009 Annual Report. The provided schedule offers insight into the company's management of inventory and potential tax assets, showing a decrease in the reserve for obsolete inventory and an increase in the deferred tax valuation allowance compared to the prior year. The extensive list of exhibits indicates a well-established corporate governance structure and a variety of financial instruments and employee incentive programs.
Apr 12, 2010
2010
LOWES COMPANIES INC Annual Report, Year Ended Jan 29, 2010
Lowe's (LOW) closed fiscal 2009 (ended January 29, 2010) with net sales down 2.1% to $47.2 billion and net earnings down 18.8% to $1.78 billion, or $1.21 diluted EPS versus $1.49 in fiscal 2008. Comparable store sales fell 6.7%, though the decline narrowed to 1.6% in the fourth quarter, the company's best performance in over three years. Management attributes the weakness to high unemployment, falling home prices, and reduced consumer willingness to take on big-ticket discretionary projects. Average ticket fell 5.7% on a comparable basis while customer transactions held up better, reflecting a shift toward smaller DIY repair and maintenance projects. Profitability was squeezed as SG&A rose to 24.75% of sales from 22.96%, driven mainly by store payroll de-leverage as stores met fixed staffing thresholds on lower sales. Gross margin actually improved 65 basis points to 34.86%, helped by a more rational promotional environment and lower markdowns. Operating (EBIT) margin contracted to 6.59% from 7.85%. Management guided to 4% to 6% sales growth and comparable store sales growth of 1% to 3% for 2010, with operating margin expanding 40 to 50 basis points and diluted EPS of $1.30 to $1.42. Balance sheet and capital allocation remain conservative. Cash rose to $632 million, short-term borrowings were fully repaid, and long-term debt fell to $4.5 billion, lowering the debt-to-capital ratio to 21.0% from 25.1%. Capital spending was cut to $1.8 billion from $3.3 billion as store expansion slowed, with 40 to 45 new stores planned for 2010 versus 62 in 2009. The board authorized a new $5 billion share repurchase program with no expiration, to be executed over roughly three years. Dividends rose to $0.355 per share, and the company holds debt ratings of A+/A1/A+ with a Fitch outlook revised to stable in March 2010.
Mar 30, 2010
2010-A
LOWES COMPANIES INC Annual Report (Amendment), Year Ended Jan 29, 2010
This filing is an amendment to Lowe's Companies, Inc.'s 2010 Form 10-K, primarily addressing the omission of Exhibit 101 due to technical difficulties during the original submission. Exhibit 101 contains the company's financial statements for the fiscal years ending January 29, 2010, January 30, 2009, and prior years, formatted in eXtensible Business Reporting Language (XBRL). While the amendment itself does not introduce new financial information or operational changes, it ensures the complete and compliant submission of the company's detailed financial data to the SEC. Investors should refer to the original 10-K filing (filed March 30, 2010) for a comprehensive understanding of Lowe's financial performance, strategic initiatives, and risks during that period.
Mar 30, 2010
2009
LOWES COMPANIES INC Annual Report, Year Ended Jan 30, 2009
Lowe's Companies (LOW) reported a difficult fiscal 2008 (year ended January 30, 2009) as the housing downturn and deep recession weighed heavily on demand for big-ticket home improvement projects. Net sales were essentially flat at $48.2 billion (down 0.1%), but comparable store sales fell 7.2%, and the fourth quarter was notably weaker with comparable sales down 9.9%. Gross margin contracted 43 basis points to 34.21%, while SG&A deleveraged 118 basis points to 22.96% of sales, driving pre-tax earnings down 22.3% to $3.5 billion and net earnings down 21.8% to $2.2 billion. Diluted EPS fell to $1.49 from $1.86.
Mar 31, 2009
2008
LOWES COMPANIES INC Annual Report, Year Ended Feb 1, 2008
Lowe's Companies (LOW) reported fiscal 2007 (ended February 1, 2008) net sales of $48.3 billion, up 2.9% year over year, but the growth came entirely from store expansion: comparable store sales fell 5.1%, with every quarter negative. Net earnings declined 9.5% to $2.8 billion, and diluted EPS fell to $1.86 from $1.99. Operating margin pressure was broad-based: SG&A deleveraged 103 basis points to 21.78% of sales, driven mainly by store payroll (67 bps) as stores hit minimum staffing levels in a weak sales environment, and depreciation rose 35 bps to 2.83% of sales on 153 new stores. Pre-tax margin fell 131 bps to 9.34%. Management described the housing-driven slowdown as continuing into 2008, with a 2008 outlook calling for roughly 3% sales growth, comparable store sales down 5% to 6%, and EBIT margin down about 180 bps. Balance sheet and cash flow shifted toward leverage and capital returns. Long-term debt rose to $5.6 billion, the debt-to-capital ratio climbed to 29.3% from 22.0%, and short-term borrowings reached $1.06 billion as the company funded buybacks and expansion. Operating cash flow was $4.3 billion against $4.0 billion of fixed-asset spending, so free cash flow was thin. The company repurchased $2.3 billion of stock, leaving $2.2 billion authorized, and raised the quarterly dividend 60% to $0.08 per share. Fitch cut Lowe's commercial paper rating to F1 from F1+ in March 2008 and moved the senior debt outlook to negative, a signal to watch for financing costs. Management is responding by slowing growth to 120 new stores in 2008 (from 153), cutting major remerchandising projects, and trimming capital spending, while continuing to gain unit market share (about 80 bps in 2007). Investors should weigh the strong long-term store footprint and market share gains against near-term earnings pressure, rising leverage, and a housing market that management expects to remain challenging through 2008.
Apr 1, 2008
2007
LOWES COMPANIES INC Annual Report, Year Ended Feb 2, 2007
Lowe's (LOW) reported fiscal 2006 (year ended February 2, 2007) net sales of $46.9 billion, up 8.5% year over year, driven almost entirely by store expansion: 155 stores opened, bringing the chain to 1,385 stores in 49 states. Comparable store sales were flat, versus a 6.1% gain in 2005, reflecting a slowing housing market, difficult hurricane-related comparisons, and roughly 15% deflation in lumber and plywood. Despite the flat comp, profitability improved: gross margin rose 32 basis points to 34.52%, SG&A leveraged 9 basis points (largely from lower bonus and retirement expense), and net earnings grew 12% to $3.1 billion, with diluted EPS of $1.99 (post 2-for-1 split) versus $1.73. Lowe's also reported that Lowe's gained 110 basis points of unit market share across its 20 product categories, a sign that share gains continued even as the core market weakened. Balance sheet and cash flow remained strong. Operating cash flow rose to $4.5 billion, while capital expenditures were $3.9 billion, leaving the company with capacity to return cash to shareholders. Lowe's repurchased $1.7 billion of stock in 2006, raised its quarterly dividend to $0.05, and retained $1.5 billion of remaining buyback authorization. Long-term debt rose to $4.3 billion after a $1 billion senior notes issuance in October 2006, and the debt-to-capital ratio rose to 22.0% from 19.8%, though debt ratings remain at A+/A1/A+ with stable outlooks. Management guided for 2007 comparable sales of roughly flat to up 2%, total sales growth near 10%, and diluted EPS of $2.02 to $2.09, while expanding into Canada (Toronto, second half of 2007) and planning Mexico entry in 2009. Key risks disclosed include housing turnover, weather, competition, supply chain disruption from imports, and the execution of an aggressive store-opening program.
Apr 3, 2007
2006-A
LOWES COMPANIES INC Annual Report (Amendment), Year Ended Feb 3, 2006
This filing is an amendment (10-K/A) for Lowe's Companies, Inc. for the fiscal year ended February 3, 2006. The primary purpose of this amendment is to restate consolidated financial statements due to a change in accounting for early payment discounts on merchandise purchases. This change recognizes discounts as a reduction of inventory cost and then cost of sales upon sale, rather than a reduction to cost of sales at the time of purchase, resulting in a slight reduction to reported net earnings for fiscal years 2003-2005. Additionally, all share and per-share amounts have been retroactively adjusted to reflect a 2-for-1 stock split that occurred in May 2006. Financially, Lowe's demonstrated strong performance leading up to this filing, with significant sales growth driven by comparable store sales increases, new store openings, and expansion of specialty sales initiatives like installed sales and commercial business customer sales. The company continued to invest heavily in infrastructure, including its supply chain and store enhancements, to support its growth strategy. The amendment clarifies that all other information not affected by the accounting change or stock split remains as originally filed.
Sep 29, 2006
2006
LOWES COMPANIES INC Annual Report, Year Ended Feb 3, 2006
Lowe's Companies, Inc. (NYSE: LOW) reported strong fiscal 2005 results for the 53-week year ended February 3, 2006. Net sales rose 19% to $43.2 billion (about 2.1 points of that growth came from the extra week), and comparable store sales increased 6.1% on top of 6.6% in 2004 and 6.7% in 2003. Gross margin expanded 62 basis points to 34.23%, and net earnings grew 27% to $2.77 billion, or $3.46 per diluted share, versus $2.71 in 2004. Return on beginning shareholders' equity improved to 24.0%. Growth was driven by the 150 new stores opened in 2005, higher average ticket ($67.67 vs. $63.43), and strong specialty sales: Installed Sales rose 31% to $2.6 billion and Special Order Sales rose 25% to $3.9 billion. The balance sheet and cash flow profile remain healthy. Operating cash flow increased 25% to $3.8 billion, while capital expenditures for fixed assets were $3.4 billion. Long-term debt, excluding current maturities, rose to $3.5 billion after a $1 billion senior notes issuance in October 2005, and the debt-to-total-capitalization ratio fell to 19.8% from 24.2%, largely because convertible notes converted into equity. Shareholders' equity grew to $14.3 billion. Lowe's returned capital through a $774 million buyback in 2005 and a quarterly dividend that rose to $0.06 per share, and the board authorized an additional $1 billion repurchase program in January 2006, leaving $1.2 billion of remaining authorization. Looking ahead, management guided fiscal 2006 to total sales growth of 13-14%, comparable store sales growth of 5-6%, and diluted EPS of $4.03 to $4.13. The company plans to open 155 stores (about 12% square footage growth) and is entering Canada with 6-10 stores in the Greater Toronto Area in 2007. Risks highlighted in the filing include sensitivity to housing-related consumer spending and interest rates, weather, competition, supply-chain disruption from imports, and execution of the aggressive store expansion program. Fiscal 2006 comparisons will be pressured by lapping the 53rd week of fiscal 2005.
Apr 7, 2006
2005
LOWES COMPANIES INC Annual Report, Year Ended Jan 28, 2005
Lowe's Companies, Inc. (LOW) reported fiscal 2004 (year ended January 28, 2005) as another year of strong growth. Net sales rose 18% to $36.5 billion, comparable store sales increased 6.6%, and net earnings grew 18% to $2.18 billion, or $2.71 diluted EPS (restated prior-period results, with a $0.16 EPS headwind from the EITF 02-16 vendor-funds accounting change, which reclassified about 258 basis points of gross margin benefit against SG&A). The company opened 140 stores, ending the year with 1,087 stores in 48 states and 123.7 million square feet of selling space, and it is the world's second-largest home improvement retailer. Management is positioning the business around specialty sales (Installed Sales up about 27%, Special Order Sales up about 27%), Commercial Business Customers, and imports. The filing also discloses a restatement of prior periods to correct lease accounting: depreciation lives for lease assets were shortened to the lease term, and ground-lease rent expense was revised. Restated net earnings were reduced by $33 million in fiscal 2003 and increased by $20 million in fiscal 2002 before other adjustments. Deloitte & Touche issued an unqualified opinion on both the financial statements and internal control over financial reporting, and management concluded internal control is effective. Balance-sheet and capital-allocation items stand out. Inventory grew 30% versus 18% sales growth as the company built distribution-center safety stock under its R3 initiative, which management expects to yield inventory leverage in the second half of 2005. Operating cash flow was $3.0 billion against $2.9 billion of fixed-asset spending, and the company repurchased $1 billion of stock. Long-term debt fell to $3.06 billion, and the company maintains strong investment-grade ratings (S&P A+, Moody's A2, Fitch A). For fiscal 2005, management guides to roughly 17% sales growth, about 5% comparable store sales growth, 150 new stores, and diluted EPS of $3.25 to $3.34, with a 53-week year.
Apr 13, 2005
2004-A
LOWES COMPANIES INC Annual Report (Amendment), Year Ended Jan 30, 2004
Lowe's Companies, Inc. (LOW) closed fiscal 2003 (year ended January 30, 2004) with sales of $30.8 billion, up 18% from $26.1 billion, and net earnings of $1.88 billion, up 28%. Diluted EPS was $2.34, versus $1.85 in fiscal 2002. Comparable store sales rose 6.7%, driven by the company's up-the-continuum product strategy, Everyday Low Prices, and strength in the housing market. Gross margin expanded to 31.2% of sales from 30.4%, mainly from lower inventory acquisition costs and reduced shrinkage. SG&A rose to 18.0% of sales, reflecting the first stock-based compensation expense under SFAS 123. This filing is Amendment No. 1 to the original 10-K, made to correct clerical errors, most notably net earnings, which the original stated as $877 million rather than the correct $1,877 million. The balance sheet is strong. Total assets reached $19.0 billion and shareholders' equity $10.3 billion. Long-term debt, excluding current maturities, was $3.7 billion, and the long-term debt-to-capitalization ratio fell to 26.3% from 31.0% a year earlier. Cash and equivalents increased to $1.4 billion, and operating cash flow from continuing operations was $3.0 billion. The company authorized a $1 billion share repurchase program through 2005 and raised its quarterly dividend 20% to $0.03. Management is guiding to roughly 17% sales growth, 140 new stores, and 5-6% comparable store sales growth in fiscal 2004. Diluted EPS guidance is $2.63 to $2.66, reflecting a roughly $0.13 hit from a change in accounting for vendor cooperative advertising funds (EITF 02-16). The main risks for investors are the sensitivity of demand to housing activity, interest rates, and discretionary home-improvement spending, along with commodity price swings in lumber and plywood and competition from larger rivals and new channels. The company's near-term growth depends on continued store expansion into metropolitan markets and on maintaining margin gains as its vendor-funding accounting changes take effect.
Apr 13, 2004
2004
LOWES COMPANIES INC Annual Report, Year Ended Jan 30, 2004
Lowe's reported a strong fiscal 2003 (year ended January 30, 2004), with net sales rising 18% to $30.8 billion and comparable store sales up 6.7%, versus 5.8% in 2002. Diluted EPS climbed 27% to $2.34 from $1.85, and net earnings reached $1.9 billion, or 6.1% of sales. Gross margin expanded to 31.2% from 30.4%, driven mainly by lower inventory acquisition costs and reduced shrink, while SG&A rose to 18.0% of sales, partly due to first-time stock-based compensation expense of $41 million under SFAS 123. Operating cash flow from continuing operations was $3.0 billion, against $2.4 billion of fixed asset spending. Growth remains the central story. Lowe's ended the year with 952 stores in 45 states, up from 854, and plans about 140 openings in 2004, which should expand selling square footage by roughly 14%. The company is shifting its expansion toward metropolitan markets over 500,000 in population, which accounted for about 46% of 2003 openings. Its 2004 outlook calls for sales growth near 17%, comparable store sales growth of 5% to 6%, and diluted EPS of $2.63 to $2.66 after a roughly $0.13 per-share hit from adopting EITF 02-16. The filing also discloses a $1 billion share repurchase authorization through 2005 that had not yet been used, and a planned increase in the quarterly dividend to $0.03. The balance sheet is conservative. Long-term debt was $3.7 billion, the long-term debt-to-capitalization ratio fell to 26.3% from 31.0%, and the company holds an A-rated senior debt profile with a positive outlook from S&P. Risks flagged in the filing include sensitivity to housing starts, the economic cycle, commodity lumber and plywood price swings, rising competition as Lowe's enters larger markets, and the execution demands of rapid expansion. Management also notes that the EITF 02-16 accounting change will modestly reduce 2004 earnings.
Apr 8, 2004
2003
LOWES COMPANIES INC Annual Report, Year Ended Jan 31, 2003
Lowe's Companies (NYSE: LOW) closed fiscal 2002 (year ended January 31, 2003) with a strong performance driven by aggressive store expansion and solid comparable-store growth. Net sales rose 20% to $26.5 billion, up from $22.1 billion, while comparable store sales increased 5.6%. Net earnings climbed 44% to $1.47 billion (5.6% of sales, versus 4.6% in 2001), and diluted EPS rose to $1.85 from $1.30. Gross margin expanded to 30.3% of sales from 28.8%, primarily from product mix improvements, lower costs, and better shrinkage, while SG&A held roughly flat as a percentage of sales at 17.9%. Return on beginning shareholders' equity improved to 22.0%. The balance sheet and cash flow profile remain healthy. Operating cash flow nearly doubled to $2.7 billion, and the company funded $2.4 billion of fixed asset additions largely from internal cash generation. Total debt was stable at roughly $3.8 billion, and the long-term debt-to-capitalization ratio fell to 31.2% from 36.2%. Lowe's exercised purchase options in January 2003 to buy $261.5 million of properties previously held under operating leases, and it reports a 2003 capital budget of $2.9 billion. Credit ratings remain investment grade (S&P A, Moody's A3, Fitch A), with a positive outlook from Moody's. The company's growth strategy centers on opening about 130 stores in 2003, with roughly 64% of expansion targeted at metro markets of 500,000 or more people, and on building its commercial business customer base. Key risks disclosed include sensitivity to housing starts, remodeling activity, and economic cycles; commodity price volatility, especially lumber; competitive pressure as the company enters larger markets and the Internet; and weather effects on seasonal categories. Management also flagged rising interest costs from higher debt levels and reduced capitalized interest, plus a higher effective tax rate of 37.6% due to expansion into higher-tax states.
Apr 15, 2003
2002
LOWES COMPANIES INC Annual Report, Year Ended Feb 1, 2002
Lowe's reported a strong fiscal 2001 (year ended February 1, 2002), with net sales up 18% to $22.1 billion and net earnings up 26% to $1.02 billion, or 4.6% of sales. Diluted EPS rose to $1.30 from $1.05 (both figures adjusted for the two-for-one stock split in mid-2001). Comparable store sales grew 2.4%, driven by stabilizing lumber and building material prices and improved sales across most merchandising categories. Gross margin expanded to 28.8% from 28.2%, and SG&A leveraged modestly to 17.7% of sales from 17.8%, reflecting expense controls in payroll and advertising. Return on beginning shareholders' equity improved to 18.6% from 17.2%. The company remains in an aggressive expansion phase. It ended the year with 744 stores (up from 650) and 80.7 million square feet of selling space, and plans to open about 123 stores in 2002 on a $2.8 billion capital budget, with roughly 96% devoted to store expansion and new distribution centers. Expansion is weighted toward metro markets of 500,000+ population. Capital spending of $2.2 billion in 2001 was funded largely by operating cash flow of $1.6 billion and about $2.1 billion of new debt, including $580.7 million of senior convertible notes and $1.005 billion of convertible notes. Long-term debt rose to 36.2% of total capitalization from 33.3%, and interest expense climbed to $173.5 million from $120.8 million. The main investor considerations are the rising leverage and interest burden that come with the expansion program, the sensitivity of sales to housing activity and commodity prices such as lumber, and the reliance on continued store growth to drive the 18% top-line increases. Management states the company was in compliance with its debt covenants and believes internal cash flow and financing will cover 2002 plans, though a downgrade in debt ratings could restrict access to commercial paper and new debt.
Apr 26, 2002
1998
LOWES COMPANIES INC Annual Report, Year Ended Jan 30, 1998
Lowe's Companies, Inc. (NYSE: LOW) reported record fiscal 1997 results for the 52 weeks ended January 30, 1998. Net sales rose 18% to $10.14 billion from $8.60 billion, driven by store expansion and a 4% comparable store sales increase (6% for large stores). Net earnings increased 22% to $357.5 million, or $2.05 per diluted share (up from $1.71), and net margin widened to 3.5% from 3.4%. Gross margin improved to 26.5% from 25.9%, supported by everyday competitive pricing discipline, product mix shifts toward larger-store assortments, and reduced exposure to low-margin consumer electronics. SG&A deleveraged modestly to 16.6% of sales from 16.2%, largely due to payroll and relocation costs at new and relocated stores. The company is investing heavily in growth. It operated 446 stores with 36.5 million square feet of selling space at year-end, up from 402 stores and 30.4 million square feet a year earlier. The 1998 capital budget is about $1.4 billion, with 75 to 80 new store projects, roughly 60% in new metropolitan markets, and a 1.17 million square foot distribution center planned in Pennsylvania. Capital expenditures on fixed assets were $773 million in 1997. Operating cash flow of $664.9 million covered much of this spending, with the balance funded by debt. Long-term debt rose to $1.06 billion, and the debt-to-capitalization ratio increased to 28.7% from 25.7%, reflecting $268 million of Medium-Term Notes and a $300 million debenture issued in February 1998. For investors, the key trade-offs are strong growth and margin expansion against rising leverage and a heavy capital program that depends on continued store productivity. The company describes its balance sheet as adequately funded for 1998 and reports no derivative positions at year-end. Its forward-looking statements flag risks tied to housing starts, discretionary repair and remodeling spending, commodity price swings in lumber and plywood, weather, competition as it enters larger metro markets, and vendor reliability. Return on beginning shareholders' equity eased to 16.1% from 17.6%, mainly because the 1996 conversion of convertible debt enlarged the equity base.
Apr 27, 1998
1997
LOWES COMPANIES INC Annual Report, Year Ended Jan 31, 1997
Lowe's Companies, Inc. closed fiscal 1996 (year ended January 31, 1997) with record results. Net sales rose 22% to $8.6 billion from $7.1 billion, driven by 66 new large stores and a 7% comparable store sales increase. Net earnings were $292.2 million, up 29% from $226.0 million, and fully diluted EPS was $1.71, up 26% from $1.36. Net margin improved to 3.4% from 3.2%, and return on beginning shareholders' equity rose to 17.6% from 15.9%. Gross margin expanded to 25.9% from 24.9%, supported by the shift toward large-format stores, higher-margin categories, and reduced exposure to lower-margin consumer electronics. The balance sheet strengthened materially. Conversion of $284.7 million of 3% convertible subordinated notes into common stock lifted shareholders' equity by $560.8 million, to 50% of total assets, and cut the long-term debt-to-capitalization ratio to 25.7% from 34.3%. Long-term debt fell 11% to $767.3 million, although capital lease obligations rose $182.7 million as the company continued leasing new stores. Operating cash flow more than doubled to $543.0 million, and inventory turns held at 4.3 times. Management guided to a 1997 capital budget of $1.2 billion, with more than 80% dedicated to expansion. Lowe's plans 60 to 65 new store projects, including 40 to 45 in new markets, and expects to fund growth through operations, leases, and external financing. Key risks disclosed include sensitivity to housing starts, home repair and remodeling activity, economic cycles, commodity price volatility in lumber and plywood, weather, and competitive pressure as the company moves into larger markets. Lowe's described itself as the world's second-largest home improvement retailer, trailing The Home Depot.
Apr 25, 1997
1996
LOWES COMPANIES INC Annual Report, Year Ended Jan 31, 1996
Lowe's Companies, Inc. (NYSE: LOW) reported fiscal 1995 (year ended January 31, 1996) as a record year, with net sales of $7.08 billion, up 16% from $6.11 billion in fiscal 1994, and net earnings of $226.0 million, roughly flat versus $223.6 million a year earlier. Net margin fell to 3.2% from 3.7%, and EPS was $1.41 (fully diluted $1.36) versus $1.44 ($1.39). Management attributes the slowdown in the second half to higher interest rates and weaker housing activity, which pushed inventory turns down to 4.3x from 4.7x. The company is in the middle of a transformation from small stores to large "big box" home improvement superstores: store count rose to 365 from 336, and selling space reached 24 million square feet, up 29% year over year. The large-store group produced 79% of sales and 80% of operating profit in fiscal 1995. Balance sheet growth was driven by capital spending. Net property rose 33% to $1.86 billion, and long-term debt (excluding current maturities) climbed 27% to $866 million, including a $100 million 6.375% senior note issued in December 1995. Shareholders' equity grew to $1.66 billion, and the equity-to-assets ratio improved to 46.6%. Management plans a capital budget of about $1 billion for fiscal 1996, with roughly 60 new stores and about 6.7 million square feet of added space, and says it will fund this mainly from operations, operating leases, and external financing, including about $40 million of stock issued to the ESOP. Investors should weigh the margin compression and flat earnings against the strong top-line growth and store expansion. Key watch items include the fiscal 1996 capital intensity, the rising proportion of leased and capital-leased real estate, and the disclosed but unquantified potential liability from a state agency's probe into imported plastic mini-blinds.
Apr 29, 1996
1995
LOWES COMPANIES INC Annual Report, Year Ended Jan 31, 1995
Lowe's Companies, Inc. (LOW) reported record fiscal 1994 (year ended January 31, 1995) results, driven by its transformation from a small-store chain into a network of large home improvement superstores. Net sales rose 35% to $6.11 billion from $4.54 billion, net earnings more than doubled-plus to $223.6 million (up roughly 70% from $131.8 million), and fully diluted EPS reached $1.39 versus $0.89. Net margin widened to 3.7%, the best since 1976, and return on beginning shareholders' equity was 25.6%, the highest since 1974. Store count grew to 336 with 18.6 million square feet of selling space, and large stores (averaging about 80,000 square feet) generated 69% of sales and 71% of operating profit while representing 57% of units. Gross margin improved to 24.8% from 23.8%, and SG&A fell to 15.4% of sales from 15.8%, reflecting operating leverage on higher volumes. Balance sheet strength improved materially: a $315.7 million common stock offering in June 1994 lifted shareholders' equity to $1.42 billion (45.7% of assets), and the long-term debt-to-capitalization ratio fell to 32.4% from 40.4%. Fixed charge coverage rose to 6.8x. Capital spending was $529 million in 1994, with a 1995 capital budget of $810 to $835 million, and the company plans 50 to 55 new stores in 1995. Key risks for investors include a higher interest cost base (interest expense up 52% to $27.9 million as rates rose), a substantial inventory build ($1.13 billion, up 33%), rising reliance on capital and operating leases, and management's own caution that the interest rate environment was less favorable entering 1995. Lowe's also remains a distant second to The Home Depot in the home improvement market, with approximately 4.8% share of the 1994 home improvement market versus Home Depot's 9.9%.
Apr 28, 1995
1994
LOWES COMPANIES INC Annual Report, Year Ended Jan 31, 1994
This filing is Lowe's Companies, Inc.'s Form 10-K for the fiscal year ended January 31, 1994, but the content provided is limited to excerpted Exhibit 13 notes on LIFO inventory accounting and a fiscal 1991 store restructuring charge. It contains no revenue, net income, balance sheet, or cash flow figures, so it cannot support a full assessment of operating performance. The cover page shows 148,210,288 common shares outstanding as of April 8, 1994, and an aggregate market value of non-affiliate voting stock of about $3.89 billion. The company is listed on the NYSE, Pacific Stock Exchange, and London Stock Exchange. The most relevant investor signal in the excerpt is the rising LIFO charge. Inventory-cost adjustments reduced earnings by $6.0 million in fiscal 1991, $9.5 million in fiscal 1992, and $15.5 million in fiscal 1993. Management attributed these charges to rising lumber and building-commodity prices, which increased cost of goods sold under LIFO accounting. Investors should note that the fiscal 1993 charge was concentrated in the first nine months, with $5.2 million recorded in the fourth quarter. The excerpt also discloses a $71.3 million pre-tax store restructuring charge in the fourth quarter of fiscal 1991, tied to the planned shift from a chain of small stores to a chain of large-format stores. To evaluate that strategy's results and the company's overall financial health, investors would need the full Annual Report to Security Holders (incorporated by reference) and the consolidated financial statements.
May 3, 1994