Summary
Lowe's Companies, Inc. reported a strong third quarter for fiscal year 2017, with net sales increasing by 6.5% to $16.8 billion and net earnings surging by 130.3% to $872 million, leading to a diluted EPS of $1.05, up significantly from $0.43 in the prior year's third quarter. This performance was driven by broad-based comparable sales increases across all product categories, particularly in Lumber & Building Materials and Appliances, and was further boosted by demand from Pro customers. The company also noted a positive impact from hurricanes Harvey and Irma on comparable sales, which contributed approximately 140 basis points. Operationally, Lowe's demonstrated improved efficiency, with Selling, General, and Administrative (SG&A) expenses leveraging significantly as a percentage of sales, largely due to the absence of prior year impairment charges. The company continued its commitment to returning cash to shareholders, with $344 million in dividends and $500 million in share repurchases during the quarter. Looking ahead, Lowe's anticipates the introduction of Craftsman products in 2018 and remains focused on enhancing its omni-channel capabilities and customer experience.
Key Highlights
- 1Net sales increased 6.5% to $16.8 billion in Q3 2017, compared to the prior year's Q3.
- 2Net earnings grew significantly by 130.3% to $872 million in Q3 2017.
- 3Diluted earnings per share (EPS) rose to $1.05 in Q3 2017, from $0.43 in Q3 2016, a 144.2% increase.
- 4Comparable sales increased by 5.7% in Q3 2017, reflecting broad-based strength across product categories and strong Pro customer demand.
- 5Hurricanes Harvey and Irma positively impacted Q3 comparable sales by approximately 140 basis points.
- 6The company repurchased $500 million of common stock and paid $344 million in dividends in Q3 2017, demonstrating a commitment to shareholder returns.
- 7SG&A expenses leveraged 323 basis points as a percentage of sales in Q3 2017, primarily due to the absence of significant prior year impairment charges.