Lowe’s Cos. beat Wall Street estimates in the fourth quarter as it continues to push its “Total Home” strategy with particular emphasis on advancing omnichannel capabilities.
Net earnings were $1.13 billion, or $1.99 per diluted share, versus $1.02 billion, or $1.77 per diluted share, in the year-previous quarter. Adjusted for one-time events, net earnings were $1.93 per diluted share versus $2.28 per diluted share in the year-before period, the company maintained.
Lowe’s beat a Yahoo Finance-published analyst consensus estimate for adjusted diluted earnings per share of $1.84 and a revenue estimate of $18.29 billion.
Comparable sales for the quarter advanced 0.2% year over year, driven by high-single-digit pro and online comparable sales, strong holiday performance and rebuilding efforts in the wake of recent hurricanes, according to the retailer. Results were offset partially by continued near-term pressure on do-it-yourself discretionary spending, Lowe’s indicated.
Net sales were $18.55 billion versus $18.6 billion in the year-earlier quarter. Operating income was $1.83 billion versus $1.69 billion in the year-prior period, the company stated.
For the full fiscal year, net earnings were $6.96 billion, or $12.23 per diluted share, versus $7.73 billion, $13.20 per diluted share, in the year previous.
Net sales were $83.67 billion versus $86.38 billion in the year earlier. Operating income was $10.47 billion versus $11.56 billion in the year prior, the company reported.
In a conference call, Marvin Ellison, Lowe’s chairman, president and CEO, said Lowe’s is working to enhance factors that strengthen its position as an omnichannel retailer, including delivery and app features, such as “Style Your Space” that help “customers reimagine rooms they want to refresh at the touch of a button.”
He added next month Lowe’s, in collaboration with Open AI, is launching what he characterized as the first AI-powered home improvement virtual advisor, which will operate on lowes.com. The advisor will provide project guidance and product recommendations with links to specific items in the company assortment.
“Our results this quarter were once again better-than-expected, as we continue to gain traction with our Total Home strategic initiatives.” Ellison said. “We remain confident in the long-term strength of the home improvement industry, and we are equally confident in our strategy to capitalize on the expected recovery. We are also pleased to award $80 million in discretionary bonuses to our frontline associates in recognition of their hard work and dedication to delivering excellent customer service.”
