- Net sales for Lowe’s in Q2 2024 were $23.59 billion, down 5.5% from the previous year and below the estimated $23.9 billion.
- Earnings per share (EPS) came in at $4.17, compared to $4.56 in the same period last year.
- Gross profit was $7.90 billion, a 6% drop year-over-year, and lower than the expected $7.96 billion.
- Gross margin was 33.5%, slightly down from 33.7% the previous year, but marginally above the estimate of 33.3%.
- Selling, General, and Administrative (SG&A) expenses were 17.1% of revenue, up from 16.4% last year, but lower than the estimated 17.4%.
- Operating margin stood at 14.6%, compared to 15.6% last year and above the estimate of 14.2%.
- Lowe’s had a total of 1,746 locations, slightly less than the estimated 1,747.
- The retail space was 194.9 million square feet, close but not quite meeting the estimated 195.97 million square feet.
- The company noted a drop in DIY sales and challenging macroeconomic conditions, prompting an updated outlook for the full year 2024.
- Despite these challenges, Lowe’s delivered strong operating performance and improved customer service.
- Stock recommendations included 16 buys, 17 holds, and 4 sells.
Lowe’s Companies Inc on Smartkarma
On Smartkarma, analysts from Baptista Research are covering Lowe’s Companies Inc with a bullish sentiment. One report titled “Lowe’s Companies: Front-End Transformation and Investment in Technology! – Major Drivers” discusses the company’s recent earnings, which met expectations for fiscal 2024. Despite a 4.1% decline in comparable sales in the first quarter, Lowe’s outperformed in spring seasonal sales, indicating positive momentum.
Another report by Baptista Research, “Lowe’s Companies Inc.: Will The Seasonality & Changing Demand Trends Have An Impact On Its Near-Term Performance? – Major Drivers,” focuses on challenges faced by Lowe’s in the fourth quarter of 2023. The company saw a 6.2% decline in comparable sales due to cautious consumer spending and unfavorable weather. The report delves into factors like changing demand trends and seasonality that could impact Lowe’s performance in the near term, offering insights for investors.
A look at Lowe’s Companies Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 0 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts at Smartkarma have provided Smart Scores indicating Lowe’s Companies Inc‘s overall outlook. With a strong score in Resilience and Growth, the long-term future looks promising for the home improvement retailer. Lowe’s shows resilience in the face of economic challenges and is poised for continued growth in the market.
Lowe’s Companies, Inc. is known for its diverse product line catering to home improvement needs. With a solid Dividend score and positive momentum, the company remains attractive for investors looking for stability and potential growth opportunities in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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