Lowe’s Companies, Inc. reported net earnings of $2.3 billion and diluted earnings per share (EPS) of $3.77 for the Q1 ended May 5, 2023, compared to diluted EPS of $3.51 in the Q1 2022.
Total sales for the Q1 2023 were $22.3 billion. Comparable sales decreased 4.3%, driven by lumber deflation, unfavorable weather and lower DIY discretionary sales. Comparable sales are based on comparison to weeks 2-14 in 2022.
“We are pleased with the performance of our business despite record lumber deflation and unfavorable spring weather. Although we delivered positive comparable sales in Pro and online for the Q1, we are updating our full-year outlook to reflect softer-than-expected consumer demand for discretionary purchases,” said Marvin R. Ellison, Lowe’s Chairman, President and CEO. “We remain optimistic about the medium-to-long term outlook for home improvement and our ability to continue to grow market share through our Total Home strategy.”
The company continues to execute a disciplined capital allocation program to deliver long-term, sustainable shareholder value. During the quarter, the company repurchased approximately 10.6 million shares for $2.1 billion, and it paid $633 million in dividends.
Based on higher-than-expected lumber deflation and lower-than-expected DIY discretionary sales, the company is updating its outlook for the operating results of full year 2023.
Full Year 2023 Outlook
- Total sales of approximately $87 – $89 billion (previously $88 – 90 billion).
- Comparable sales expected to be down -2% to -4% as compared to prior year (previously flat to down -2%).
- Adjusted operating income as a percentage of sales (adjusted operating margin) of 13.4% to 13.6% (previously 13.6% to 13.8%).
- Interest expense of approximately $1.5 billion.
- Adjusted effective income tax rate of approximately 25%.
- Adjusted diluted earnings per share of $13.20 to $13.60 (previously $13.60 to $14.00).
- Capital expenditures of up to $2 billion.
Lowe’s Companies, Inc. is a home improvement company serving approximately 17 million customer transactions a week in the U.S.
