UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 2, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to ______ Commission File Number 1-7898 LOWE'S COMPANIES, INC. (Exact name of registrant as specified in its charter) North Carolina 56-0578072 (State ...

MOORESVILLE, N.C., Aug. 29, 2024 /PRNewswire/ -- Lowe's Companies, Inc. (NYSE: LOW) announces that Marvin R. Ellison, chairman and chief executive officer, will participate in a fireside chat at the Goldman Sachs 31st Annual Global Retailing Conference.  What:   Marvin Ellison participating in a fireside chat at the Goldman Sachs 31st Annual Global Retailing Conference When:   9:35 a.m. ET on Thursday, Sept. 5, 2024 Where:   Listen to the audio webcast at ir.lowes.com under "Events & Presentations" The arc ...

When analysts prepare to assign a rating and a price target to a stock, they typically discuss the trend with each other. Otherwise, they arrange all the questions that need to be answered to make recommendations during quarterly earnings conference calls. This is not the most exciting part of Wall Street, but occasionally, it does become so.Lowe's Companies TodayLOWLowe's Companies$250.07 +9.76 (+4.06%) 52-Week Range$181.85▼$262.49Dividend Yield1.84%P/E Ratio20.09Price Target$254.04Add to WatchlistOn the r ...

DNY59Lowe’s stock: previous thesis and Q2 recap I last wrote on Lowe’s (NYSE:LOW) stock about four months ago. As you can see from the screenshot below, that article, "Lowe's Stock: Buy Wonderful Businesses At Fair Prices," was published by Seeking Alpha on May 3, 2024. In that article, I argued for a buy thesis based on the following considerations: Lowe's valuation, with P/E ratios substantially higher than the sector median, is by no means cheap. However, I do not see an obvious overvaluation either ...

Lowe's Companies Inc (NYSE:LOW) and Kellanova (NYSE:K) are both seeing unusual options activity today: the former's after an earnings call and the latter's following a U.S. Securities and Exchange Commission (SEC) filing. Lowe's Companies stock is 0.7% lower at $241.62 at last glance, a modest midday deficit considering that, while the blue-chip retailer posted better-than-expected earnings for the fiscal second quarter, its quarterly revenue missed the mark and the firm slashed is full-year outlook. In res ...

Lowe’s Companies, Inc. LOW released earnings results for its second quarter Tuesday before the opening bell.The company reported adjusted earnings per share of $4.10, beating the analyst consensus of $3.99. Quarterly revenues totaled $23.586 billion, missing the street view of $24.013 billion.Analysts covering the Louisville, Kentucky-based company provided their takes:JP Morgan analyst Christopher Horvers reiterated an Overweight rating.Goldman Sachs analyst Kate McShane reiterated the Buy rating on Lowe’s ...

Lowe’s cut its annual profit and sales forecasts on Tuesday, echoing bigger rival Home Depot’s concerns of a slim chance of a recovery in home improvement demand this year.The Federal Reserve was expected to cut interest rates earlier this year, but insufficient proof of easing inflation thus far has kept the rates high, which is affecting home sales, and consequently demand for expensive renovation projects.“We’re seeing significant implications … people aren’t moving nearly as often as they typically do b ...

Financial Data and Key Metrics - Q2 2024 sales were $23.6 billion, with comparable sales down 5.1% YoY [6] - Comparable average ticket increased by 0.8%, driven by strength in Pro-heavy categories [28] - Comparable transactions declined by 5.9%, primarily due to reduced DIY project spending and lower seasonal transactions [28] - Gross margin was 33.5%, down 19 basis points YoY due to supply chain investments, partially offset by lower transportation costs and PPI initiatives [28] - Adjusted SG&A was 17.3% of sales, deleveraging 87 basis points due to sales deleverage and cycling of a favorable legal settlement [29] - Adjusted operating margin rate declined by 114 basis points to 14.4% [29] - Inventory ended the quarter at $16.8 billion, down $581 million YoY [29] - Free cash flow generated was $2.7 billion, with $1 billion spent on share repurchases and $629 million paid in dividends [29] Business Line Performance - Pro business delivered mid-single-digit positive comps, while online sales grew by 2.9% [7][8] - Building products saw above-average comps in rough plumbing, electrical, and millwork, with positive comps in building materials [15] - Home decor faced pressure in big-ticket DIY discretionary projects, particularly in flooring, kitchen, and bath [17] - Appliances delivered above-average comps and double-digit growth in Pro sales [17] - Paint sales benefited from a partnership with Sherwin-Williams, offering free same-day delivery nationwide [18] - Outdoor power equipment saw strong performance with the addition of Toro to the lineup [18] - Tools segment expanded with private-branded Cobalt tools and the introduction of Klein Tools' KNECT system [19] Market Performance - Unfavorable weather impacted seasonal categories like lawn and garden, outdoor living, and exterior paint [18][28] - Pro growth was consistent across geographic divisions, with no notable regional differences outside of hurricane impacts [39] - Online sales growth was driven by improved conversion rates and expanded same-day delivery options [8] Strategy and Industry Competition - The company continues to invest in its Total Home strategy, focusing on Pro customers and online sales growth [7][13] - Lowe's is leveraging partnerships with Apple, NVIDIA, OpenAI, and Palantir to develop AI solutions for customer and associate experiences [10] - The company is modernizing its technology infrastructure and supply chain to improve operational efficiency [29][71] - Lowe's is focusing on innovation, such as the Lowe's Style Studio app with Apple Vision Pro, to enhance customer engagement [10] Management Commentary on Macro Environment - The macro environment remains challenging, with elevated interest rates and inflation impacting DIY discretionary spending [11][44] - Housing turnover is near its lowest levels since the mid-1990s due to the lock-in effect of higher mortgage rates [11] - Despite near-term challenges, the company remains optimistic about the medium- to long-term outlook for the home improvement industry, driven by home price appreciation, disposable income growth, and aging housing stock [12] Other Important Information - Lowe's launched the MyLowe's Rewards loyalty program nationwide in March, which has provided insights into customer purchasing trends [9] - The company is piloting in-store design experiences using Apple Vision Pro in three test markets [10] - Lowe's is working with suppliers to reduce costs and reinvest in marketing and merchandising strategies [21] Q&A Session Summary Question: Spread between DIY and Pro performance - The company believes it is gaining share in the Pro business but attributes DIY softness to macroeconomic factors rather than market share loss [36][37] - Geographic performance was consistent, with no notable differences outside of hurricane impacts [39] Question: Margin outlook for the second half - The margin outlook is influenced by the timing of merchandising PPI initiatives and comparisons to prior-year incentive compensation [41] - Gross margins are expected to be roughly flat for the full year [41] Question: Guidance cut and DIY demand recovery - The guidance cut reflects cautious consumer sentiment and macroeconomic challenges, particularly in big-ticket DIY discretionary spending [44][45] - The company remains optimistic about the Pro business but is cautious about the timing of a DIY recovery [44] Question: Pricing and promotional activity - Promotional activity remains stable, with no significant changes expected in the pricing environment [48][50] Question: Weather impact on Q2 comps - Unfavorable weather in May, June, and July pressured seasonal categories, impacting overall comps [54] Question: Gross margin outlook and vendor clawbacks - Gross margins are expected to improve in Q3 and Q4, with vendor clawbacks accelerating in the second half of the year [57] Question: Earnings algorithm and fixed cost leverage - The company expects its earnings algorithm to hold, with operating margin expansion contingent on top-line recovery [62][63] Question: Pro customer strategy and future initiatives - The company plans to expand its Pro customer base by enhancing fulfillment, digital engagement, and targeting underserved Pro segments [83] Question: Rural store performance and delivery impact - Rural stores performed in line with expectations, and the company is leveraging its digital platform to serve rural customers effectively [86] Question: Impact of potential Fed rate cuts - The company is uncertain about the exact rate level needed to stimulate demand but remains hopeful that lower rates will improve consumer sentiment and housing activity [90] Question: Long-term margin outlook - The company maintains its long-term margin target of 14.5%, contingent on a recovery in top-line growth [93] Question: Incremental risks in the business - The company is monitoring consumer sentiment, housing affordability, and the preference for services over goods as potential risks [96]

Lowe's (LOW) executives spent Tuesday's earnings call discussing the retailer's struggles with lower discretionary spending from consumers, along with its efforts to expand its market share among professional contractors and improve its digital experience. The comments came after Lowe's second-quarter revenue came in lower than expected, leading the retailer to lower its full-year projections for sales and profits as inflation has led many consumers to hold off on larger home-improvement projects. Lowe's s ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...