01—Abstract
Summary
Summary of the 10-K filed March 27, 2023. Cited figures are marked; the original filing is the authoritative source.
Lowe's Companies, Inc. reported net sales of $97.1 billiona 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 billionb 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 billionc 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.
02—Key points
Key Highlights
- Net 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%.
- Net 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.
- Adjusted diluted earnings per share (non-GAAP) increased by 14.7% to $13.81.
- The company returned $16.5 billion to shareholders through $14.1 billion in share repurchases and $2.4 billion in dividends.
- Lowe's completed the sale of its Canadian retail business, aligning with its strategy to simplify operations and focus on the U.S. market.
- The "Total Home" strategy continues, with a focus on enhancing Pro customer offerings, including the launch of the MVPs Pro Rewards & Partnership Program.
- Cash 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.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2023, Lowes Companies Inc kept $0.07.
- Revenue$97.06B100.0%
- Cost of revenue−$64.80B66.8%
- Gross profit$32.26B33.2%
- Operating costs−$22.10B22.8%
- Operating income$10.16B10.5%
- Interest, other & tax−$3.72B3.8%
- Net income$6.44B6.6%
Where FY2023 revenue went
$97.06B- Cost of revenue: $64.80B, 67% of revenue
- SG&A: $20.33B, 21% of revenue
- Net income: $6.44B, 6.6% of revenue
- Other operating costs: $1.77B, 1.8% of revenue
- Interest, other & tax: $3.72B, 3.8% of revenue
Kept 6.6% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2023filed March 27, 2023Financial Statements
FY2023 against FY2022
| Line item | FY2023FY2022 | Change |
|---|---|---|
| Revenue | $97.06B$96.25B | +0.8% |
| Cost of Revenue | $64.80B$64.19B | +0.9% |
| Gross Profit | $32.26B$32.06B | +0.6% |
| SG&A Expenses | $20.33B$18.30B | +11.1% |
| Operating Income | $10.16B$12.09B | −16.0% |
| Net Income | $6.44B$8.44B | −23.8% |
| EPS (Basic) | $10.20$12.07 | −15.5% |
| EPS (Diluted) | $10.17$12.04 | −15.5% |
| Shares Outstanding (Basic) | 629.00M696.00M | −9.6% |
| Shares Outstanding (Diluted) | 631.00M699.00M | −9.7% |
05—Questions
Frequently Asked Questions
What was Lowe's financial performance in fiscal year 2022?
In fiscal year 2022, Lowe's reported net sales of $97.1 billion, a slight increase of 0.8% driven by an extra week in the fiscal year. Comparable sales decreased by 0.9%. Net earnings fell 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 costs, adjusted diluted earnings per share increased by 14.7%.
How did Lowe's return capital to shareholders?
Lowe's demonstrated a strong commitment to returning capital to shareholders. In fiscal year 2022, the company repurchased $14.1 billion of common stock and paid $2.4 billion in dividends, totaling $16.5 billion.
What is the status of the Canadian retail business sale?
Lowe's completed the sale of its Canadian retail business on February 3, 2023. This divestiture is part of the company's strategy to simplify its business model and concentrate its focus on the U.S. home improvement market.
What are Lowe's key strategic priorities?
Lowe's core strategy, known as "Total Home," focuses on providing a comprehensive range of products and services for both professional (Pro) and do-it-yourself (DIY) customers. Key pillars include driving Pro penetration, accelerating the online business, expanding installation services, driving localization, and elevating product assortments. The company is also investing in its supply chain and omnichannel capabilities.
06—Continue