Summary
Lowe's Companies, Inc. reported a strong first quarter for fiscal year 2021, with net sales increasing by 24.1% to $24.4 billion compared to the same period in 2020. This growth was primarily driven by a significant increase in comparable sales, up 25.9%, reflecting broad-based demand across DIY and Pro customers, both in-store and online. The company's 'Total Home' strategy, focusing on Pro customers, online expansion, installation services, and product assortment, is showing positive momentum. Net earnings saw a substantial increase of 73.6% to $2.3 billion, leading to a diluted earnings per common share of $3.21, an 82.1% rise from the prior year. This performance was supported by improved gross margins, leverage in SG&A expenses, and disciplined capital allocation, including significant share repurchases ($3.0 billion) and dividend payments ($440 million). The company maintains a strong liquidity position with $6.7 billion in cash and cash equivalents and ample credit facility availability.
Financial Highlights
50 data points| Revenue | $24.42B |
| Cost of Revenue | $16.29B |
| Gross Profit | $8.13B |
| SG&A Expenses | $4.49B |
| Operating Income | $3.25B |
| Net Income | $2.32B |
| EPS (Basic) | $3.22 |
| EPS (Diluted) | $3.21 |
| Shares Outstanding (Basic) | 718.00M |
| Shares Outstanding (Diluted) | 720.00M |
Key Highlights
- 1Net sales surged 24.1% to $24.4 billion in Q1 2021.
- 2Comparable sales increased by a robust 25.9%, with broad-based strength across most product categories.
- 3Net earnings grew significantly by 73.6% to $2.3 billion.
- 4Diluted earnings per share rose 82.1% to $3.21.
- 5The company returned $3.0 billion to shareholders through share repurchases and $440 million in dividends.
- 6Operating margin improved substantially due to higher sales, SG&A leverage, and productivity initiatives.
- 7Cash flow from operations remained strong at $4.5 billion.