Earnings higher, sales lower for Lowe’s

Lowe’s, based in Mooresville, N.C., reported an increase in profits but a decrease in full year and fourth quarter revenue.

The company reported total sales for the quarter were $18.6 billion, down from $22.4 billion in the same quarter last year. Full year sales were $86.4 billion, down from $97.1 billion.

“Comparable sales decreased 6.2%,” said the firm, “due to a slowdown in DIY demand and unfavorable January winter weather, while pro customer comparable sales were flat for the quarter.”

Net earnings for the fourth quarter were $1 billion, compared with net earnings of $957 million for the same quarter last year. Net earnings for the full year were $7.7 billion compared to $6.5 billion from the previous year.

In the outlook for the full year 2024, the company said it expects total sales of $84 to $85 billion. Comparable sales are expected to be down -2 to -3% compared to last year.

As of February 2, 2024, Lowe’s reported it operated 1,746 stores representing 194.9 million square feet of retail selling space.

The Bottom Line: Lowe’s sales for the fourth quarter of 2023 fell about 6% to $18 billion.

What the CEO said: “This quarter we delivered strong operating profit and improved customer satisfaction, despite the continued pullback in DIY spending,” said Marvin Ellison, chairman, president and CEO of Lowe’s.

“We remain confident in the long-term strength of the home improvement market, and we are making the right investments in our Total Home strategy to take share,” said the CEO.

“We are also pleased to award $140 million in discretionary bonuses to our frontline associates in recognition of their exceptional customer service in 2023,: said Ellison.

Company info: Click HERE to read the full year and Q4 2023 financial report from Lowe’s.