Lowe's Q2 2024 – Earnings Down, Sales Decline

By Tamara Parker • Tuesday, August 20 15:11 • Permanent Link

Lowe's Companies, Inc. has reported its sales and earnings results for the second quarter of 2024, and the numbers show both positive and negative changes compared to the same period in 2023.

In terms of earnings, the company reported a net profit of $2.4 billion, with diluted earnings per share (EPS) coming in at $4.17. Comparing this to the second quarter of 2023, the EPS was $4.56, indicating a decrease in earnings per share.

Total sales for the quarter were $23.6 billion, down from $25.0 billion in the previous year's quarter. This represents a decline in sales compared to the same period in 2023.

Comparable sales also decreased by 5.1% in the second quarter of 2024, driven by continued pressure in DIY bigger ticket discretionary spending and unfavorable weather affecting sales in seasonal and outdoor categories. However, there were positive comparable sales in the professional (pro) and online segments.

The company also provided an update on its full-year 2024 outlook, revising its total sales to be in the range of $82.7 to $83.2 billion, down from the previous estimate of $84 to $85 billion. Additionally, comparable sales are now expected to be down by -3.5 to -4.0%, as compared to the prior year, a change from the previous estimate of down -2 to -3%.

To support its long-term value for shareholders, the company repurchased approximately 4.4 million shares for $1.0 billion during the quarter and paid $629 million in dividends.

Lowe's Companies, Inc. remains confident in its long-term investments and the total home strategy, despite the challenging macroeconomic environment. The company is focused on serving its customers and making the right investments to capture market share when conditions improve.

The company's full-year 2024 outlook also includes adjusted diluted earnings per share of approximately $11.70 to $11.90, a revision from the previous estimate of $12.00 to $12.30. The adjusted operating margin is expected to be in the range of 12.4 to 12.5%, down from the previous estimate of 12.6 to 12.7%.

Today the company's shares have moved -1.3% to a price of $240.11. For more information, read the company's full 8-K submission here.

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