On February 26, 2025, Lowe's Companies Inc (LOW, Financial) released its 8-K filing detailing its fourth quarter 2024 financial results. The company reported a diluted earnings per share (EPS) of $1.99, exceeding the analyst estimate of $1.85. Adjusted diluted EPS stood at $1.93, also surpassing expectations. Total sales for the quarter reached $18.6 billion, slightly above the estimated $18,291.80 million.
Lowe's Companies Inc (LOW, Financial) is the world's second-largest home improvement retailer, operating over 1,700 stores in the United States. Following the 2023 divestiture of its Canadian locations, Lowe's focuses on providing products and services for home decorating, maintenance, repair, and remodeling. The company primarily targets retail do-it-yourself (DIY) customers, accounting for approximately 70% of sales in 2024, while expanding its commercial and professional business clients to 30% from less than 20% over the past six years.
Lowe's reported a modest 0.2% increase in comparable sales for the fourth quarter, driven by high-single-digit growth in Pro and online sales, strong holiday performance, and rebuilding efforts post-hurricanes. However, the company faced challenges from continued pressure in DIY discretionary spending. These results underscore the importance of Lowe's strategic initiatives in navigating market uncertainties and capitalizing on recovery opportunities.
The company's financial achievements include a net earnings of $1.1 billion for the quarter, with a notable $80 million pre-tax gain from the 2022 sale of its Canadian retail business. This gain positively impacted the diluted EPS by $0.06. Lowe's capital allocation strategy remains robust, with approximately 5.5 million shares repurchased for $1.4 billion and $650 million paid in dividends during the quarter. For the fiscal year, Lowe's returned $6.5 billion to shareholders through share repurchases and dividends.
Important metrics from Lowe's financial statements include:
| Metric | Value |
|---|---|
| Net Earnings | $1.1 billion |
| Diluted EPS | $1.99 |
| Adjusted Diluted EPS | $1.93 |
| Total Sales | $18.6 billion |
These metrics highlight Lowe's ability to maintain profitability and shareholder value amidst challenging market conditions.
Lowe's performance in the fourth quarter reflects its strategic focus on enhancing customer experience and expanding its market share in the home improvement sector. The company's disciplined capital allocation and strategic initiatives position it well for future growth. Looking ahead, Lowe's has provided a 2025 outlook with total sales projected between $83.5 to $84.5 billion and a diluted EPS range of $12.15 to $12.40, indicating confidence in its long-term strategy.
“Our results this quarter were once again better-than-expected, as we continue to gain traction with our Total Home strategic initiatives,” said Marvin R. Ellison, Lowe’s chairman, president and CEO.
Overall, Lowe's Companies Inc (LOW, Financial) demonstrates resilience and strategic foresight in navigating market challenges, making it a noteworthy consideration for value investors and stakeholders in the retail-cyclical industry.
Explore the complete 8-K earnings release (here) from Lowe's Companies Inc for further details.
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