Summary
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.
Financial Highlights
51 data points| Revenue | $71.31B |
| Cost of Revenue | $48.40B |
| Gross Profit | $22.91B |
| SG&A Expenses | $17.41B |
| Operating Income | $4.02B |
| Net Income | $2.31B |
| EPS (Basic) | $2.84 |
| EPS (Diluted) | $2.84 |
| Shares Outstanding (Basic) | 811.00M |
| Shares Outstanding (Diluted) | 812.00M |
Key Highlights
- 1Net sales increased by 3.9% to $71.3 billion in fiscal 2018, driven by comparable sales growth of 2.4%.
- 2Net earnings decreased by 32.9% to $2.3 billion, impacted by significant charges, including a $952 million goodwill impairment for Canadian operations.
- 3The company is undergoing a strategic reassessment, leading to exits from Orchard Supply Hardware, certain underperforming stores in the U.S. and Canada, and plans to exit Mexico retail operations.
- 4Lowe's returned $4.5 billion to shareholders in fiscal 2018 through $3.0 billion in share repurchases and $1.5 billion in dividends.
- 5Significant leadership changes occurred, with Marvin R. Ellison appointed President and CEO, and Richard R. Dreiling appointed Chairman of the Board.
- 6The company plans to invest approximately $1.6 billion in capital expenditures for fiscal 2019, focusing on existing store improvements and strategic initiatives.
- 7Gross margin as a percentage of sales decreased by 57 basis points in fiscal 2018 compared to fiscal 2017, impacted by inventory rationalization and increased distribution costs.