01—Abstract
Summary
Summary of the 10-K filed March 24, 2025. Cited figures are marked; the original filing is the authoritative source.
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 billiona 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 billionb 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.
02—Key points
Key Highlights
- Net sales for fiscal year 2024 decreased by 3.1% to $83.7 billion, impacted by macroeconomic pressures on DIY discretionary spending.
- Net earnings decreased by 10.0% to $7.0 billion, with diluted earnings per share falling to $12.23 from $13.20 in the prior year.
- Positive comparable sales growth was observed in Building Materials, supported by strong Pro customer demand.
- The company's 'Total Home' strategy is progressing, with a focus on Pro penetration, online acceleration, and expanded home services.
- Lowe's maintained a strong liquidity position with $1.8 billion in cash and cash equivalents and $4.0 billion in undrawn credit facilities.
- Significant capital allocation towards shareholder returns included $3.9 billion in share repurchases and $2.6 billion in dividends for fiscal year 2024.
- The company is making strategic investments in its supply chain and omnichannel capabilities to improve customer experience and operational efficiency.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Lowes Companies Inc kept $0.08.
- Revenue$83.67B100.0%
- Cost of revenue−$55.80B66.7%
- Gross profit$27.88B33.3%
- Operating costs−$17.41B20.8%
- Operating income$10.47B12.5%
- Interest, other & tax−$3.51B4.2%
- Net income$6.96B8.3%
Where FY2025 revenue went
$83.67B- Cost of revenue: $55.80B, 67% of revenue
- SG&A: $15.68B, 19% of revenue
- Net income: $6.96B, 8.3% of revenue
- Other operating costs: $1.73B, 2.1% of revenue
- Interest, other & tax: $3.51B, 4.2% of revenue
Kept 8.3% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed March 24, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $83.67B$86.38B | −3.1% |
| Cost of Revenue | $55.80B$57.53B | −3.0% |
| Gross Profit | $27.88B$28.84B | −3.4% |
| SG&A Expenses | $15.68B$15.57B | +0.7% |
| Operating Income | $10.47B$11.56B | −9.4% |
| Net Income | $6.96B$7.73B | −10.0% |
| EPS (Basic) | $12.25$13.23 | −7.4% |
| EPS (Diluted) | $12.23$13.20 | −7.3% |
| Shares Outstanding (Basic) | 567.00M582.00M | −2.6% |
| Shares Outstanding (Diluted) | 568.00M584.00M | −2.7% |
05—Questions
Frequently Asked Questions
What were the primary drivers for the decline in net sales and earnings in fiscal year 2024?
The decline in net sales and earnings for fiscal year 2024 was primarily driven by macroeconomic factors, including ongoing inflation and higher interest rates, which dampened discretionary spending among do-it-yourself (DIY) customers. This led to lower comparable customer transactions, particularly in big-ticket interior projects.
How is Lowe's addressing the slowdown in DIY spending?
Lowe's is focusing on its 'Total Home' strategy, which includes enhancing its Pro customer offerings and services, accelerating its online business, and expanding its installation services. The company noted positive comparable sales in Building Materials and increased Pro penetration, indicating success in these areas.
What is Lowe's strategy for returning capital to shareholders?
Lowe's remains committed to returning excess cash to shareholders. In fiscal year 2024, the company repurchased $3.9 billion of its common stock and paid $2.6 billion in dividends, reflecting a dividend payout ratio of 37%.
What is Lowe's financial outlook and liquidity position?
As of January 31, 2025, Lowe's reported $1.8 billion in cash and cash equivalents and maintained $4.0 billion in undrawn capacity on its revolving credit facilities, indicating a strong liquidity position. The company is guiding approximately $2.5 billion in capital expenditures for fiscal year 2025, focusing on strategic initiatives.
06—Continue