Lowe’s Reports First Quarter 2021 Sales And Earnings Results
Lowe’s Companies, Inc. reported net earnings of $2.3 billion and diluted earnings per share (EPS) of $3.21 for the quarter ended April 30, 2021 compared to net earnings of $1.3 billion and diluted EPS of $1.76 in the first quarter of 2020. Excluding charges in the prior-year period related to the strategic review of certain operations, first quarter diluted EPS of $3.21 increased 81% from adjusted diluted EPS of $1.77 in the first quarter of 20201.
–Consolidated Comparable Sales Increased 25.9%; U.S. Comparable Sales Increased 24.4%
–Represents U.S. Comparable Sales Increase on a Two-Year Basis of 39.7%
–First Quarter Diluted EPS of $3.21
Total sales for the first quarter were $24.4 billion compared to $19.7 billion in the first quarter of 2020, and comparable sales increased 25.9%. Comparable sales for the U.S. home improvement business increased 24.4% for the first quarter.
For the fifth consecutive quarter, 100% of Lowe’s stores earned a Winning Together profit-sharing bonus. This payout to front-line hourly associates totals a record $152 million, which is $70 million above the target level.
“Our outstanding performance continued this quarter, as we delivered strong sales growth and operating margin expansion. We delivered over 30% growth in Pro, over 18% growth in all 15 U.S. regions, and growth in Canada that outpaced the U.S.,” commented Marvin R. Ellison, Lowe’s president and CEO. “I would like to thank our front-line associates for their hard work and commitment to delivering exceptional customer service. Looking forward, I remain confident in our ability to accelerate our market share gains while driving further improvement in operating margin.”
The Company continues to execute a disciplined capital allocation program to deliver long-term, sustainable shareholder value. During the quarter, the Company repurchased 16.8 million shares for $3.1 billion, and it paid $440 million in dividends.
As of April 30, 2021, Lowe’s operated 1,972 home improvement and hardware stores in the United States and Canada representing 208 million square feet of retail selling space, and it serviced approximately 230 dealer-owned stores.
A conference call to discuss first quarter 2021 operating results is scheduled for today, Wednesday, May 19, at 9:00 am ET. The conference call will be available by webcast and can be accessed by visiting Lowe’s website at ir.lowes.com and clicking on Lowe’s First Quarter 2021 Earnings Conference Call Webcast. Supplemental slides will be available approximately 15 minutes prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.
Lowe’s Business Outlook
The Company delivered very strong financial results in the first quarter of 2021, with sales momentum continuing into May. The Company is currently tracking ahead of the Robust Market scenario provided at its December 9, 2020 Investor Update, which assumed fiscal 2021 sales of $86 billion. Better-than-expected year-to-date results and a supportive macroeconomic backdrop build the Company’s confidence in its ability to deliver strong results for the fiscal year, including continued market share gains and the achievement of a 12% operating margin. Additionally, the Company continues to plan for $9 billion in share repurchases and $2 billion in capital expenditures in fiscal 2021.
For the complete press release, click here.
About Lowe’s Companies, Inc.
Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 20 million customers a week in the United States and Canada. With fiscal year 2020 sales of $89.6 billion, Lowe’s and its related businesses operate or service more than 2,200 home improvement and hardware stores and employ over 300,000 associates. Based in Mooresville, N.C., Lowe’s supports the communities it serves through programs focused on creating safe, affordable housing and helping to develop the next generation of skilled trade experts. For more information, visit Lowes.com.
Source: Lowe’s Companies, Inc.