Lowe's Outlines Next Chapter of Total Home Strategy to Fuel Long-Term Growth
Lowe's Companies, Inc. (NYSE: LOW) is hosting its 2022 Analyst and Investor Conference today in New York City to provide an update on its key growth initiatives and long-term financial targets. A live video webcast will be available on ir.lowes.com beginning at 8 a.m. Eastern time.
"We are building on our momentum with the next chapter of our Total Home strategy, designed to enhance our omnichannel capabilities and position Lowe's as a one-stop shop for DIY and Pro customers to get everything they need across all of their projects," said Marvin R. Ellison, Lowe's chairman, president and CEO. "We remain committed to our best-in-class capital allocation strategy, centered around investing in our strategic growth imperatives, enhancing returns and delivering long-term shareholder value."
Today's presentations include the company's plans for growth across its five focus areas: deepening Pro penetration, accelerating its online business, expanding installation services, driving localization and elevating its product assortment. Additionally, the company is providing scenario planning details for its 2023 financial performance to offer increased transparency in an uncertain macroeconomic environment.
Based on its confidence in the company's continued momentum and strong cash generation capabilities, the board of directors has authorized a new $15 billion common stock repurchase program. This new repurchase program has no expiration date and adds to the previous program's balance, which was $6.4 billion as of Dec. 6, 2022.
Lowe's Business Outlook
Lowe's affirms its full year 2022 financial outlook. All adjusted measures exclude asset impairment and expected transaction costs associated with the sale of our Canadian retail business, which is expected to close in early 2023.
Full Year 2022 Outlook - a 53-week year (comparisons to full year 2021 –a 52-week year)
- Total sales of approximately $97 to $98 billion, including the 53rd week
- 53rd week expected to increase total sales by approximately $1.0 to $1.5 billion
- Comparable sales expected to be flat to down -1% as compared to prior year
- Gross margin rate up slightly compared to prior year
- Depreciation and amortization of approximately $1.75 billion
- Adjusted operating income1 as a percentage of sales (adjusted operating margin1) of 13.0%
- Interest expense of $1.1 to $1.2 billion
- Adjusted effective income tax rate1 of approximately 25%
- Adjusted diluted earnings per share1 of $13.65 to $13.80
- Total share repurchases of approximately $13 billion
- Adjusted ROIC1 of over 37%
- Capital expenditures of up to $2 billion
The Canadian retail business represents less than 6% of consolidated full year 2022 sales outlook and approximately 60 basis points of dilution on the consolidated full year 2022 adjusted operating margin outlook.
A replay of today's event, including the accompanying presentation, will be archived on ir.lowes.com.
Lowe's Companies, Inc
Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 19 million customer transactions a week in the United States and Canada. With fiscal year 2021 sales of over $96 billion, Lowe's and its related businesses operate or service nearly 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.
1Adjusted operating income, adjusted operating margin, adjusted effective income tax rate, and adjusted diluted earnings per share are non-GAAP financial measures. In addition, adjusted Return on Invested Capital (ROIC) is calculated using a non-GAAP financial measure. The Company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items without unreasonable effort, including timing of and deal-related transaction costs associated with the sale of our Canadian retail business.