Lowe’s Companies reports 9.2% decrease in Q2 sales

Company remains profitable with net earnings of $2.7 billion for the quarter ended Aug. 4

MOORESVILLE, N.C. — Home improvement retailer Lowe’s Companies reported 9.2% decrease in sales for the second quarter ended Aug. 4 compared to the same period last year.

Sales for the quarter totaled $25 billion, compared to $27.5 billion last year. For the full first half, sales totaled $47.3 billion, compared to $51.1 billion, the same period last year, a 7.5% decrease.

Net earnings for the second quarter totaled $2.7 billion, or $4.56 per share, compared to $3 billion, or $4.67 per share the same period last year. For the full first half, net earnings totaled $4.9 billion, or $8.32 per share, compared to $5.3 billion, or $8.16 per share.

The company said that comparable stores sales decreased just 1.6% due to a strong spring recovery, which included its Pro services aimed at contractors, remodelers and property management, and its online business, which includes furniture sales.

“Our investments in our Total Home strategy continued to drive growth across Pro and online this quarter,” said Marvin R. Ellison, company chairman, president and chief executive officer. “And we are excited by our recent launch of same-day delivery nationwide and the expansion of our rural merchandising framework to roughly 300 stores. Our ability to reduce expenses while improving customer service is the result of excellent execution by our team, and we remain confident in the mid-to long-term outlook for the home improvement industry. In recognition of the contributions of our front-line associates, we are awarding over $100 million in discretionary and profit-sharing bonuses to them this quarter. I would like to thank our front-line team for serving our customers and supporting our communities.”

Lowes ranked at number 26 on Home News Now’s list of 125 Furniture and Bedding Retailers with estimated 2022 sales of $815 million in the furniture segment. Most of its furniture and décor is sold on its website, www.lowes.com, which includes a wide product mix of case goods and upholstery and accent/occasional furniture. Many of these products also offer free and speedy delivery from the company’s distribution facilities/fulfillment centers.

Other highlights of the financial report were as follows:

+ The company reported operating income of $3.9 billion for the quarter, or 15.6% of sales compared to $4.2 billion, or 15.4% of sales last year. For the full first half, it reported operating income of $7.2 billion, or 15.16% of sales, compared to $7.5 billion, or 14.73% of sales last year.

+ It reported $44.5 billion in total assets during the second quarter, compared to liabilities of $59.3 billion.

+ Cash and cash equivalents totaled $3.5 billion by the end of the second quarter, compared to $1.5 billion the same period last year.

+ Its average sales ticket was $100.66, up .3% from the same period last year

+ The company had a 6.9% increase in online sales during the quarter compared to the same period last year.

+ Seasonal and outdoor living, including outdoor furniture sales, where one of seven of 14 total product categories where the company experienced comps that were above company averages. The other six areas were lawn and garden, building materials, rough plumbing, hardware, tools and paint.

Thomas Russell

Home News Now Editor-in-Chief Thomas Russell has covered the furniture industry for 25 years at various daily and weekly consumer and trade publications. He can be reached at tom@homenewsnow.com and at 336-508-4616.

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