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10-KPeriod: FY2023

LOWES COMPANIES INC Annual Report, Year Ended Feb 3, 2023

Filed March 27, 2023For Securities:LOW

Summary

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.

Financial Statements
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Key Highlights

  • 1Net sales for fiscal 2022 reached $97.1 billion, a 0.8% increase year-over-year, primarily due to a 53rd week, with comparable sales decreasing by 0.9%.
  • 2Net earnings decreased by 23.8% to $6.4 billion, impacted by $2.5 billion in pre-tax costs related to the sale of the Canadian retail business.
  • 3Adjusted diluted earnings per share (non-GAAP) increased by 14.7% to $13.81.
  • 4The company returned $16.5 billion to shareholders through $14.1 billion in share repurchases and $2.4 billion in dividends.
  • 5Lowe's completed the sale of its Canadian retail business, aligning with its strategy to simplify operations and focus on the U.S. market.
  • 6The "Total Home" strategy continues, with a focus on enhancing Pro customer offerings, including the launch of the MVPs Pro Rewards & Partnership Program.
  • 7Cash flow from operations remained strong at $8.6 billion, and the company ended the fiscal year with $1.3 billion in cash and $3.5 billion in undrawn credit facilities.

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