Table of Contents
Key Points
- Lowe's total sales fell 3.92% to $65.12 billion for the first nine months of 2024, driven by lower consumer spending on big-ticket items.
- Net earnings dropped 13.02% to $5.83 billion, with diluted EPS declining to $10.22 from $11.40 year-over-year.
- Despite challenges, Lowe’s saw strong online and Pro sales growth, contributing to resilience in outdoor DIY projects and overall performance.
Lowe’s Companies Inc. led by one of the world’s highest-ranking Black CEOs, Marvin Ellison, reported lower sales for the nine months of 2024, reflecting a pullback in consumer spending on big-ticket home improvement projects.
Total sales for the first nine months ended Nov. 1, 2024, were $65.12 billion, down 3.92 percent from $67.78 billion in the prior-year period.
The decline was driven by a decrease in demand for discretionary items in the Do-It-Yourself (DIY) category, suggesting economic uncertainties are causing consumers to be more cautious.
Net earnings also slumped 13.02 percent, falling to $5.83 billion from $6.71 billion. Diluted earnings per share (EPS) of $10.22 for the nine months were lower than the $11.40 reported in the prior year.
The company also recognized a $54 million pre-tax gain associated with the 2022 sale of the Canadian retail business.
Bright spots emerge despite an overall decline
Despite the headline figures, Lowe's demonstrated resilience with a strong performance in key segments.
Online sales, outdoor DIY projects, and Pro sales—targeting professional contractors—maintained steady momentum, with the online channel thriving.
Lowe's Chairman, President, and CEO Marvin Ellison highlighted the company's performance, attributing it to high-single-digit growth in Pro sales, robust online sales, and increased activity in smaller-ticket outdoor DIY projects, even excluding storm-related activity.
“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,” Ellison said.
He also expressed heartfelt sympathy for those affected by Hurricanes Helene and Milton and extended gratitude to associates, suppliers, and first responders for their unwavering commitment to supporting impacted communities.
With a disciplined focus on its leading capital allocation program, the company continues to generate long-term shareholder value.
During the period, it repurchased approximately 2.9 million shares for $758 million and paid $654 million in dividends.
Lowe's reports lower assets in Q1 2024
Lowe's, a major Fortune 50 company in the home improvement sector, operates over 1,700 stores across the United States and Canada with roughly 300,000 associates.
As of Nov. 1, 2024, the company had 1,747 stores encompassing 195 million square feet of retail selling space.
Under Ellison's leadership, Lowe's balance sheet demonstrated notable improvement.
Total assets increased by 5.23 percent, rising from $42.52 billion to $44.74 billion as of the nine months ending Nov. 1, 2024.
In addition to his executive role, Marvin Ellison holds a minority stake of 0.13 percent in Lowe's Companies Inc., representing 748,000 shares ordinary shares. This stake is currently valued at nearly $200 million.
