Lowe’s Reports Q3 2024 Financial Results Amid Economic Challenges

Lowe’s Companies, Inc. announced its financial results for the third quarter ending November 1, 2024, revealing a slightly declining income under challenging economic conditions. The home improvement retailer reported net earnings of $1.7 billion, or $2.99 per share, compared to $1.77 billion, or $3.06 per share, in the same period last year. However, the adjusted diluted earnings per share, which excludes certain one-time gains, was $2.89.

According to Lowe’s, total sales fell slightly to $20.2 billion from $20.5 billion in the previous year. This was attributed to a 1.1% decrease in comparable sales, largely due to decreased demand for large-ticket DIY projects, which was partially offset by storm-related sales and positive sales from professional and online sectors.

Marvin R. Ellison, Lowe’s Chairman, President and CEO, stated, «Our results this quarter were modestly better-than-expected, even excluding storm-related activity, driven by high-single-digit positive comps in Pro, strong online sales and smaller-ticket outdoor DIY projects.» He also acknowledged the impact of recent hurricanes and thanked employees and first responders for their efforts in aiding affected communities.

Lowe’s updated its guidance for the full 2024 fiscal year, now expecting sales between $83 billion and $83.5 billion, an increase from previous projections. Despite this, comparable sales are anticipated to decline by 3% to 3.5%, slightly less than earlier estimates.

In terms of shareholder returns, Lowe’s repurchased approximately 2.9 million shares for $758 million and distributed $654 million in dividends during the third quarter. The company continues to focus on generating long-term shareholder value through its significant capital allocation program.

Operating 1,747 stores across the U.S., Lowe’s has maintained its market presence, serving approximately 16 million customer transactions weekly. The company remains optimistic about capitalizing on the expected recovery in the home improvement sector, which it plans to discuss further in its upcoming Analyst and Investor Conference next month.

Despite the challenges faced, Lowe’s shares have risen about 22% this year, slightly lower than the broader S&P 500 index which gained roughly 24% over the same period. The company’s stock closed at $271.77, giving it a market value of around $154.17 billion as of Monday’s close.

Looking ahead, Lowe’s will host a conference call later today to discuss its third-quarter 2024 operating results. The call will be accessible online via Lowe’s website, where supplemental information will also be available.