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Oct 28, 2022
Lowe's Q3 2022 Earnings Report
Lowe's reported better-than-expected results, driven by Pro growth and improved DIY sales trends.
Key Takeaways
Lowe's reported Q3 2022 results with total sales of $23.5 billion and diluted EPS of $0.25, which included a pre-tax non-cash asset impairment charge of $2.1 billion related to its Canadian retail business. Excluding the impairment charge, adjusted diluted EPS increased to $3.27. U.S. comparable sales increased 3.0%.
U.S. Comparable Sales Increased 3.0%.
Third Quarter Diluted EPS of $0.25; Adjusted Diluted EPS of $3.27.
Total sales for the third quarter were $23.5 billion compared to $22.9 billion in the third quarter of 2021.
Company is increasing its full year 2022 financial outlook reflecting stronger-than-expected operating results.
Lowe's
Lowe's
Forward Guidance
The company is increasing its full year 2022 financial outlook reflecting stronger-than-expected operating results.
Positive Outlook
- Total sales of approximately $97 – $98 billion, including the 53rd week
- 53rd week expected to increase total sales by approximately $1.0 billion to $1.5 billion
- Comparable sales expected to be flat to down -1% as compared to prior year
- Gross margin rate up slightly compared to prior year
- Adjusted diluted earnings per share of $13.65 to $13.80 (previously $13.10 to $13.60)
Challenges Ahead
- Depreciation and amortization of approximately $1.75 billion
- Adjusted operating income as a percentage of sales of 13.0%
- Interest expense of $1.1 to $1.2 billion
- Adjusted effective income tax rate of approximately 25%
- Capital expenditures of up to $2 billion