Lowe's Companies Inc (LOW) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strong ...

GuruFocus.com11-20

Revenue: $20.2 billion for the third quarter. Comparable Sales: Down 1.1% for the quarter. Pro Sales: High single-digit positive comps. Online Sales: 6% comparable sales growth. Gross Margin: 33.7% of...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nLowe's Companies Inc (LOW) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strong ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-20 15:04 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/lowes-companies-inc-low-q3-070450541.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $20.2 billion for the third quarter.\nComparable Sales: Down 1.1% for the quarter.\nPro Sales: High single-digit positive comps.\nOnline Sales: 6% comparable sales growth.\nGross Margin: 33.7% of...</p>\n\n<a href=\"https://finance.yahoo.com/news/lowes-companies-inc-low-q3-070450541.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LOW","symbol_name":"劳氏","start_time":0,"source_url":"https://finance.yahoo.com/news/lowes-companies-inc-low-q3-070450541.html","article_id":"2484157142","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/1q2O5jKg2blpU8zDT.GabA--~B/aD0xMDQ7dz0yMjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/f934c8fb29077b12fa41e1a1d39a9144"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2484157142","pubTimestamp":1732086290,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Gross Margin: 33.7% of sales in the third quarter.Adjusted SG&A: 19.2% of sales, delevered 86 basis points versus prior year.Adjusted Operating Margin: 12.3%, declined 86 basis points.Inventory: $17.6 billion, roughly flat to prior year.Free Cash Flow: $728 million generated in the third quarter.Capital Expenditures: $571 million in the third quarter.Share Repurchases: 2.9 million shares for $758 million.Adjusted Diluted EPS: $2.89 for the third quarter.Full Year Sales Outlook: $83 billion to $83.5 billion.Full Year Comparable Sales Outlook: Down 3% to down 3.5%.Full Year Adjusted Operating Margin Outlook: 12.3% to 12.4%.GuruFocus has detected 2 Warning Sign with VREX.Lowe's Companies Inc  reported third quarter sales of $20.2 billion, with results modestly better than expected, driven by strong Pro and online sales.Lowe's Companies Inc  is investing in its Total Home Strategy to position the company for long-term growth and sustainable market share gains, anticipating a home improveme","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"LOW":"劳氏"},"translate_title":"劳氏公司(LOW)2024年第三季度收益看涨期权亮点：以强大的……应对挑战。","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"LOW":1},"content_text":"Revenue: $20.2 billion for the third quarter.\nComparable Sales: Down 1.1% for the quarter.\nPro Sales: High single-digit positive comps.\nOnline Sales: 6% comparable sales growth.\nGross Margin: 33.7% of sales in the third quarter.\nAdjusted SG&A: 19.2% of sales, delevered 86 basis points versus prior year.\nAdjusted Operating Margin: 12.3%, declined 86 basis points.\nInventory: $17.6 billion, roughly flat to prior year.\nFree Cash Flow: $728 million generated in the third quarter.\nCapital Expenditures: $571 million in the third quarter.\nShare Repurchases: 2.9 million shares for $758 million.\nDividends Paid: $654 million.\nReturn on Invested Capital: Over 31%.\nAdjusted Debt-to-EBITDAR: 3.04 times.\nAdjusted Diluted EPS: $2.89 for the third quarter.\nFull Year Sales Outlook: $83 billion to $83.5 billion.\nFull Year Comparable Sales Outlook: Down 3% to down 3.5%.\nFull Year Adjusted Operating Margin Outlook: 12.3% to 12.4%.\nFull Year Adjusted Diluted EPS Outlook: $11.80 to $11.90.\n\n\nWarning! GuruFocus has detected 2 Warning Sign with VREX.\n\nRelease Date: November 19, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nLowe's Companies Inc (NYSE:LOW) reported third quarter sales of $20.2 billion, with results modestly better than expected, driven by strong Pro and online sales.\nPro sales saw high single-digit positive comps, attributed to investments in serving small to medium-sized Pro customers and enhancing the Pro shopping experience.\nOnline sales grew by 6%, with increased online conversion and traffic, including a double-digit increase in traffic on the Lowe's mobile app.\nThe MyLowe's Rewards loyalty program, launched in March, is showing promising results in key performance metrics like repeat purchases and average order value.\nLowe's Companies Inc (NYSE:LOW) is investing in its Total Home Strategy to position the company for long-term growth and sustainable market share gains, anticipating a home improvement market recovery.\n\n Negative Points \n\nComparable sales were down 1.1% in the third quarter, with DIY discretionary bigger ticket projects remaining soft.\nThe macro environment remains challenging, with high interest rates and inflation putting pressure on consumer affordability and housing turnover at near 30-year lows.\nGross margin was impacted by storm-related pressures, including mix pressure from lower-margin products and incremental transportation costs.\nAdjusted SG&A delevered 86 basis points versus prior year, partly due to direct storm-related expenses and incremental labor costs.\nThe outlook for fiscal 2024 includes a decline in comparable sales by 3% to 3.5%, reflecting ongoing pressure in DIY discretionary projects and macroeconomic challenges.\n\n Q & A Highlights \nQ: Can you provide more details on the DIY loyalty program and its future plans? A: Marvin Ellison, CEO, explained that the DIY loyalty program, launched in March, has been successful with increased membership and key metrics like repeat purchases and average order value. The company plans to discuss future strategies at the upcoming Analyst and Investor Conference.\nQ: How is Lowe's preparing for potential tariff increases? A: Marvin Ellison, CEO, stated that while it's early to predict tariff impacts, Lowe's has strengthened its processes and diversified sourcing. William Boltz, EVP of Merchandising, added that they have enhanced tools and strong supplier relationships to manage any challenges.\nQ: What are your thoughts on the DIY market trends and future outlook? A: Marvin Ellison, CEO, acknowledged the current pressure on DIY due to macroeconomic factors but emphasized the importance of the DIY segment to Lowe's. The company is focusing on Pro and online growth while awaiting macro improvements to boost DIY demand.\nQ: Can you elaborate on the impact of hurricanes on Q3 results and expectations for Q4? A: Brandon Sink, CFO, noted that hurricanes contributed a 100 basis point lift to Q3 comps, mainly in the latter half. The storms affected gross margins due to product mix and additional costs. A modest storm-related benefit is expected in Q4, but no significant margin drags are anticipated.\nQ: How is Lowe's managing expenses and margins amid affordability challenges? A: Marvin Ellison, CEO, highlighted Lowe's focus on disciplined expense management and productivity improvement initiatives (PPI) to maintain margins. Brandon Sink, CFO, added that the company continues to invest strategically while managing costs effectively.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2484157142"}