RETAIL ALERT | Lowe’s Releases Q4 and FY23 Earnings Report

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Comp sales for Lowe’s in its fiscal fourth quarter decreased -6.2% due to a slowdown in DIY demand, flat Pro sales, and unfavorable weather conditions in January. 

Lowe’s net sales for fiscal 2023 were $86.4 billion, and the company estimates total sales for fiscal 2024 to decrease to between $84 and $85 billion. The company also estimates comp sales to be down -2% to -3% in 2024. Execs said that comps will be better in the second half of the fiscal year based on lower year-ago bases rather than anticipated demand growth. 


Q4 by the numbers:

  • Sales declined by 17.1% compared to the fourth quarter of fiscal 2022. However, absent the $1.4 billion in sales attributed to a 53rd week in the prior year’s fourth quarter, sales declined by 11.4%.
  • Monthly comps were -4.8% in November, -6.6% in December, and -7.4% in January.
  • Transactions declined by -6.1% and the average ticket declined by -0.1%.
  • Comp sales for tickets greater than $500 declined -8.8%.

Fiscal Year 2023 by the numbers:

  • Sales declined -11.0% while net earnings improved 20.0%.
  • S. comp sales declined -4.7%.
  • Transactions declined -4.6%, and the average ticket declined -0.1%.

Looking ahead to 2024:

  • When it comes to macroeconomic conditions, the company believes it will be ‘more of the same’ in 2024 – they do not anticipate any significant changes in interest rates or housing market dynamics that would materially change their base business.
  • The company says that its MyLowe’s Rewards program will be nationwide in March, making Lowe’s the only national retailer with both Pro and DIY loyalty programs. Executives feel that the new DIY loyalty program will provide DIYers with the rationale they need to pick Lowe’s over other retailers.
  • Lowe’s said they will continue to claw back price increases from suppliers to preserve margins.
  • The company will also seek to grow Pro volume at twice the market rate.

What this means for you:

Although Lowe’s executives believe that key drivers for their business remain healthy – disposable income, home appreciation, and the average age of housing stock – they expect to feel DIY pressure throughout the year. The company also said there are two spectrums of consumers right now: those looking for value above all else and those willing to trade up to innovation. Brands that either highlight their price/value equation or ways in which they offer affordable premium features will have a better chance of succeeding at Lowe’s in 2024.


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