Summary
Lowe's Companies, Inc. reported a 1.5% decrease in net sales for the third quarter of fiscal year 2024, reaching $20.2 billion, compared to $20.5 billion in the prior year. This decline was primarily driven by a 1.1% decrease in comparable sales, attributed to a 1.3% drop in customer transactions, slightly offset by a 0.2% increase in average ticket. Net earnings for the quarter were $1.7 billion, down from $1.8 billion in the same period last year, resulting in diluted earnings per share of $2.99, a slight decrease from $3.06. The company noted that the results included a $54 million pre-tax gain from contingent consideration related to the sale of its Canadian retail business, which added $0.10 to diluted EPS. Excluding this, adjusted diluted EPS was $2.89. Despite the top-line softness, Lowe's highlighted strength in serving Pro customers and growth in online sales, alongside proactive expense management and a resilient long-term market outlook driven by macro trends.
Key Highlights
- 1Third quarter net sales decreased 1.5% to $20.2 billion, with comparable sales down 1.1% due to fewer customer transactions.
- 2Net earnings for the quarter declined to $1.7 billion from $1.8 billion year-over-year, leading to diluted EPS of $2.99, down from $3.06.
- 3A $54 million pre-tax gain from contingent consideration related to a past business sale positively impacted earnings by $0.10 per share.
- 4The company experienced strength in serving Pro customers and observed growth in online sales, partially offsetting broader market softness.
- 5Lowe's maintained disciplined expense management, contributing to strong operating performance despite a challenging economic environment.
- 6Cash flow from operations remained robust, providing $8.7 billion for the first nine months of the fiscal year, supporting investments and shareholder returns.
- 7Share repurchases for the first nine months totaled $2.68 billion, with $12.2 billion remaining authorization under the current program.