Lowe’s Q4 2024 Earnings

A Lowe’s store stands in Brooklyn on February 27, 2024 in New York City.

Spencer Platt | Getty Images

Lowe’s topped Wall Street’s quarterly earnings and revenue expectations on Wednesday and said its sales slump should end in the year ahead.

The home improvement retailer said it expects full-year total sales to range from $83.5 billion to $84.5 billion, which on the upper end would be higher than its total revenue of $83.67 billion for fiscal 2024. It said it expects comparable sales to be flat to up 1% year over year and earnings per share to range from approximately $12.15 to $12.40.

A tough housing market

On the company’s earnings call, CEO Marvin Ellison stressed that Lowe’s still faces "a challenging home improvement market." He said high mortgage rates have created "a significant gap between today’s rates for homebuyers and the lower rates many homeowners currently enjoy,." That’s led to a "lock-in effect" that’s kept consumers from buying and selling, he said.

How Lowe’s is trying to grow sales

With that tougher backdrop in mind, Lowe’s has tried to move the needle by investing in its online business, attracting more sales from contractors, electricians and other pros and expanding value-driven offers for homeowners.

Sales of major appliances, a category often driven by purchases after an item gets old or breaks, grew in the quarter compared to the year-ago period, said Bill Boltz, executive vice president of merchandising, on the company’s earnings call. He said Lowe’s has doubled the number of next-day deliveries over the past few years, and it can deliver and install major appliances the next day in almost every U.S. zip code.

Lowe’s strategy

Lowe’s has also launched a new private brand called Lowe’s Essentials with products that cost $10 or less, such as closet hangers, gardening tools and water cans, Boltz said on the earnings call. Those items are on display near the front of stores.

The company has also launched a loyalty program for DIY customers. So far, it’s attracted 30 million members, and they are outspending non-members by nearly 50%, Boltz said on the earnings call.

A look at the competition

Lowe’s competitor, Home Depot, narrowly beat Wall Street’s fourth-quarter estimates on Tuesday and also snapped an eight consecutive quarter losing streak with comparable sales.

Yet Home Depot CFO Richard McPhail said the company doesn’t expect the housing market or mortgage rates to change. Instead, he told CNBC that he thinks consumers will gradually get used to elevated rates as "a new normal."

Conclusion

Lowe’s has faced a challenging home improvement market, but the company is working to position itself for growth. By investing in its online business, attracting more sales from contractors and other pros, and expanding value-driven offers for homeowners, Lowe’s is looking to capitalize on the home improvement recovery.

Frequently Asked Questions

Q: What are Lowe’s expectations for full-year sales?
A: Lowe’s expects full-year total sales to range from $83.5 billion to $84.5 billion.

Q: What are Lowe’s expectations for comparable sales?
A: Lowe’s expects comparable sales to be flat to up 1% year over year.

Q: What are Lowe’s expectations for earnings per share?
A: Lowe’s expects earnings per share to range from approximately $12.15 to $12.40.

Q: How is Lowe’s addressing the challenging home improvement market?
A: Lowe’s is investing in its online business, attracting more sales from contractors and other pros, and expanding value-driven offers for homeowners.