Lowe's Q4: A work in progress
While continuing efforts to boost its online business, Lowe’s swung to an expectation-exceeding profit in the fourth quarter.
Fourth-quarter net earnings of $509 million compared to a net loss of $824 million in the same quarter last year. Fourth-quarter comp-store sales grew 2.6% in the U.S., a figure that fell below analyst expectations.
Sales for the fourth quarter were $16.0 billion compared to $15.6 billion in the fourth quarter of 2018. According to CEO Marvin Ellison, the growth was driven largely by U.S. brick and mortar stores, supported by investments in technology, store environment and the pro business.
Ellison’s comment reflected two of the company’s major thrusts: improving and building its technology and attracting more contractor customers and share of the pro’s wallet.
For the full year, Lowe’s reported net sales of $72.1 billion, up from $71.3 billion in the previous year. Net income for 2019 jumped to $4.28 billion, from $2.31 billion in the prior year.
“Though we are only one year into a multi-year plan, we made significant progress transforming our company and believe we are well positioned to capitalize on solid demand in a healthy home improvement market,” Ellison added.
As of Jan 31, 2020, Lowe’s operated 1,977 home improvement and hardware stores in the United States and Canada
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The bottom line: As same-store sales of positive 2.6% lagged behind its rival Home Depot (5.3%), fourth quarter net income swung to $509 million, compared to a loss of $834 million in the fourth quarter last year.
What the CEO said: “We have a detailed road map in place to modernize our e-commerce platform and accelerate Lowes.com sales, which combined with the sales productivity improvement in our physical stores, underscores our opportunity to unlock additional growth,” said Marvin R. Ellison, Lowe’s president and CEO.
Read more: The company’s efforts on the technology front are detailed here. Lowe’s full fourth quarter earnings report is here.
Fourth-quarter net earnings of $509 million compared to a net loss of $824 million in the same quarter last year. Fourth-quarter comp-store sales grew 2.6% in the U.S., a figure that fell below analyst expectations.
Sales for the fourth quarter were $16.0 billion compared to $15.6 billion in the fourth quarter of 2018. According to CEO Marvin Ellison, the growth was driven largely by U.S. brick and mortar stores, supported by investments in technology, store environment and the pro business.
Ellison’s comment reflected two of the company’s major thrusts: improving and building its technology and attracting more contractor customers and share of the pro’s wallet.
For the full year, Lowe’s reported net sales of $72.1 billion, up from $71.3 billion in the previous year. Net income for 2019 jumped to $4.28 billion, from $2.31 billion in the prior year.
“Though we are only one year into a multi-year plan, we made significant progress transforming our company and believe we are well positioned to capitalize on solid demand in a healthy home improvement market,” Ellison added.
As of Jan 31, 2020, Lowe’s operated 1,977 home improvement and hardware stores in the United States and Canada
# # #
The bottom line: As same-store sales of positive 2.6% lagged behind its rival Home Depot (5.3%), fourth quarter net income swung to $509 million, compared to a loss of $834 million in the fourth quarter last year.
What the CEO said: “We have a detailed road map in place to modernize our e-commerce platform and accelerate Lowes.com sales, which combined with the sales productivity improvement in our physical stores, underscores our opportunity to unlock additional growth,” said Marvin R. Ellison, Lowe’s president and CEO.
Read more: The company’s efforts on the technology front are detailed here. Lowe’s full fourth quarter earnings report is here.