Lowe's Reports Decline in Net Sales and Earnings for Q3 and Nine Months of Fiscal 2024

Lowe's Companies, Inc. reported its financial results for the third quarter and the first nine months of fiscal 2024, revealing a decline in both net sales and net earnings compared to the same periods in the previous year. For the three months ended November 1, 2024, net sales reached $20.2 billion, a decrease of 1.5% from $20.5 billion in the same quarter of fiscal 2023. Net earnings for the quarter were $1.7 billion, down from $1.8 billion year-over-year, resulting in diluted earnings per share of $2.99, compared to $3.06 in the prior year. For the nine-month period, net sales totaled $65.1 billion, a decline of 3.9% from $67.8 billion, with net earnings of $5.8 billion compared to $6.7 billion in the previous year.

The company noted a decrease in comparable sales of 1.1% for the third quarter, driven by a 1.3% decline in customer transactions, although this was partially offset by a 0.2% increase in the average ticket size. The decline in sales was attributed to ongoing softness in the Do-It-Yourself (DIY) segment, although there was some offset from storm-related sales and strong performance among professional customers. The gross margin for the quarter increased slightly to 33.69%, benefiting from productivity initiatives, despite challenges from supply chain investments and storm-related product mix.

In terms of operational metrics, Lowe's reported a total of 1,747 stores at the end of the quarter, with sales floor square footage remaining stable at 195 million square feet. The company also highlighted its ongoing share repurchase program, having repurchased $758 million of common stock during the quarter, and paid $654 million in dividends. The total cash and cash equivalents as of November 1, 2024, stood at $3.3 billion, with an additional $4.0 billion available under its revolving credit facilities.

Looking ahead, Lowe's management expressed cautious optimism regarding the medium-to-long-term drivers of the business, including home price appreciation and demographic trends. The company plans to continue investing in its Total Home strategy while maintaining operational discipline to position itself for growth as market conditions improve. Despite the current economic uncertainties, Lowe's remains committed to returning excess cash to shareholders and enhancing its operational capabilities to better serve its customers.