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Lowe's Q3 2024: Navigating Market Challenges, Focusing on Growth

Eli GrantTuesday, Nov 19, 2024 6:11 am ET

4min read

LOW --

Lowe's Companies, Inc. (NYSE: LOW) recently reported its third quarter 2024 sales and earnings results, providing insights into the home improvement retailer's performance amidst a challenging macroeconomic environment. The company's earnings per share (EPS) came in at $2.99, with adjusted EPS of $2.89, reflecting a decline from the prior year. Total sales reached $20.2 billion, down from $20.5 billion in the prior-year quarter, with comparable sales decreasing by 1.1%. Despite these headwinds, Lowe's remains focused on strategic initiatives to drive growth and maintain its competitive position.

Lowe's strategic focus on the Pro customer segment and the Total Home strategy contributed to the company's performance in the quarter. The Pro segment experienced high-single-digit positive comparable sales, while the Total Home strategy drove mid-single-digit positive comps with Pro customers. Additionally, strong online sales and smaller-ticket outdoor DIY projects helped offset some of the pressure from softness in DIY bigger-ticket discretionary demand.

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The company's capital allocation program also played a significant role in enhancing shareholder value. Lowe's repurchased approximately 2.9 million shares for $758 million and paid $654 million in dividends during the quarter. These actions positively impacted adjusted diluted EPS by $0.10, contributing to the overall performance.

Looking ahead, Lowe's has updated its full-year 2024 outlook, reflecting a more optimistic view on comparable sales, now expected to be down -3.0 to -3.5%. This revision is driven by the company's strong performance in the Pro segment, robust online sales, and the resilience of smaller-ticket outdoor DIY projects. However, Lowe's still faces headwinds from continued pressure in DIY bigger-ticket discretionary spending and unfavorable weather impacting seasonal and other outdoor categories.

In conclusion, Lowe's third quarter 2024 results demonstrate the company's ability to navigate market challenges and maintain a focus on strategic growth initiatives. By capitalizing on the Pro segment, the Total Home strategy, and strong online sales, Lowe's is well-positioned to capitalize on the expected recovery in home improvement. As the company continues to adapt to changing market conditions and return capital to shareholders, investors can remain confident in its long-term prospects.

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mattko

11/19

$LOW is a stock that has been showing some signs of recovery in recent days. Although there is still a fair amount of uncertainty surrounding the company, I believe that $LOW could be a good investment for those looking to take a chance on a rebounding stock. Keep in mind that this is not a recommendation to buy, but rather an observation of potential for those considering adding some risk to their portfolio. Remember, investing always involves some degree of risk, so it's important to do your own research and make decisions based on your own financial goals and risk tolerance.

Hamlerhead

$LOW "Trade Idea 4: Sell the November 22 Expiry 257.50/287.50 Strangle for a $1.80 credit." is about to expire. As the expiration approaches, the IV will likely fall, allowing us to either buy to close or watch the trade run its course.

Arturs727

$LOW | Lowes' Q3 25 Earnings: Adjusted EPS was $2.89 (estimated at $2.824), Revenue reached $20.2B (est. $19.93B). Comparable sales were down by 1.1% (est. -2.7%). Forecast for FY Total Sales is now $83.0B to $83.5B, previously $82.7B to $83.2B. Forecast for FY Comparable Sales is -3% to -3.5%, previously -3.5% to -4%. Adjusted EPS for FY is projected at $11.80 to $11.90, previously $11.70 to $11.90. Updated Outlook includes modest storm-related demand in Q4.

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