Lowe's Files Q1 2024 10-Q

TL;DR

Lowe's Q1 2024 10-Q is in. Financials look steady.

AI Summary

Lowe's Companies Inc. filed its 10-Q for the period ending May 3, 2024. The filing details financial performance and operational updates for the first quarter of fiscal year 2024. Key financial figures and balance sheet information are presented, reflecting the company's ongoing business activities.

Why It Matters

This filing provides investors and analysts with the latest financial snapshot of Lowe's, crucial for understanding the company's performance in the current retail environment.

Risk Assessment

Risk Level: low — This is a routine quarterly filing providing standard financial information.

Key Numbers

• 2024 Q1 — Fiscal Quarter (Reporting period for the 10-Q)
• 01-31 — Fiscal Year End (Lowe's fiscal year concludes on January 31st)

Key Players & Entities

• LOWES COMPANIES INC (company) — Filer
• 0000060667 (company) — Central Index Key
• 20240503 (date) — Period of Report
• 20240530 (date) — Filed as of Date

FAQ

Key Financial Figures

• $0.50 — ich registered Common Stock, par value $0.50 per share LOW New York Stock Exchange

Filing Documents

• low-20240503.htm (10-Q) — 927KB
• exhibit151_05032024.htm (EX-15.1) — 8KB
• exhibit311_05032024.htm (EX-31.1) — 9KB
• exhibit312_05032024.htm (EX-31.2) — 9KB
• exhibit321_05032024.htm (EX-32.1) — 4KB
• exhibit322_05032024.htm (EX-32.2) — 4KB
• low-20240503_g1.jpg (GRAPHIC) — 45KB
• low-20240503_g2.jpg (GRAPHIC) — 48KB
• 0000060667-24-000085.txt ( ) — 4941KB
• low-20240503.xsd (EX-101.SCH) — 32KB
• low-20240503_cal.xml (EX-101.CAL) — 64KB
• low-20240503_def.xml (EX-101.DEF) — 88KB
• low-20240503_lab.xml (EX-101.LAB) — 443KB
• low-20240503_pre.xml (EX-101.PRE) — 286KB
• low-20240503_htm.xml (XML) — 656KB

Forward-Looking Statements

Forward-Looking Statements ii

- Financial Information

PART I - Financial Information 1

Financial Statements

Item 1. Financial Statements 1 Consolidated Statements of Earnings 1 Consolidated Statements of Comprehensive Income 1 Consolidated Balance Sheets 2 Consolidated Statements of Shareholders' Deficit 3 Consolidated Statements of Cash Flows 4

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 5 Note 1: Summary of Significant Accounting Policies 5 Note 2: Revenue 5 Note 3: Restricted Investments 6 Note 4: Fair Value Measurements 6 Note 5: Accounts Payable 8 Note 6: Debt 8 Note 7: Derivative Instruments 9 Note 8: Shareholders' Deficit 9 Note 9: Earnings Per Share 10 Note 1 0 : Supplemental Disclosure 10 Report of Independent Registered Public Accounting Firm 12

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 13

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 19

Controls and Procedures

Item 4. Controls and Procedures 19

- Other Information

PART II - Other Information 20

Legal Proceedings

Item 1. Legal Proceedings 20

Risk Factors

Item 1A. Risk Factors 20

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 20

Other Information

Item 5. Other Information 20

Exhibits

Item 6. Exhibits 21 Signature 22 i Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Form 10-Q includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believe", "expect", "anticipate", "plan", "desire", "project", "estimate", "intend", "will", "should", "could", "would", "may", "strategy", "potential", "opportunity", "outlook", "scenario", "guidance", and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives (including objectives related to environmental and social matters), business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services including customer acceptance of new offerings and initiatives, macroeconomic conditions and consumer spending, share repurchases, and Lowe's strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements. A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe's and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretion

- FINANCIAL INFORMATION

Part I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Lowe's Companies, Inc. Consolidated Statements of Earnings (Unaudited) In Millions, Except Per Share and Percentage Data Three Months Ended May 3, 2024 May 5, 2023 Current Earnings Amount % Sales Amount % Sales Net sales $ 21,364 100.00 % $ 22,347 100.00 % Cost of sales 14,274 66.81 14,820 66.32 Gross margin 7,090 33.19 7,527 33.68 Expenses: Selling, general and administrative 4,009 18.77 3,824 17.12 Depreciation and amortization 428 2.00 415 1.85 Operating income 2,653 12.42 3,288 14.71 Interest – net 352 1.65 349 1.56 Pre-tax earnings 2,301 10.77 2,939 13.15 Income tax provision 546 2.56 679 3.04 Net earnings $ 1,755 8.21 % $ 2,260 10.11 % Weighted average common shares outstanding – basic 571 596 Basic earnings per common share $ 3.06 $ 3.78 Weighted average common shares outstanding – diluted 572 597 Diluted earnings per common share $ 3.06 $ 3.77 See accompanying notes to the consolidated financial statements (unaudited). Lowe's Companies, Inc. Consolidated Statements of Comprehensive Income (Unaudited) In Millions, Except Percentage Data Three Months Ended May 3, 2024 May 5, 2023 Amount % Sales Amount % Sales Net earnings $ 1,755 8.21 % $ 2,260 10.11 % Cash flow hedges – net of tax ( 3 ) ( 0.02 ) ( 4 ) ( 0.02 ) Other ( 1 ) — 1 0.01 Other comprehensive loss ( 4 ) ( 0.02 ) ( 3 ) ( 0.01 ) Comprehensive income $ 1,751 8.19 % $ 2,257 10.10 % See accompanying notes to the consolidated financial statements (unaudited). 1 Table of Contents Lowe's Companies, Inc. Consolidated Balance Sheets (Unaudited) In Millions, Except Par Value Data May 3, 2024 May 5, 2023 February 2, 2024 Assets Current assets: Cash and cash equivalents $ 3,237 $ 2,950 $ 921 Short-term investments 264 423 307 Merchandise inventory – net 18,224 19,522 16,894 Other current assets 1,025 1,023 949 Total current assets 22,750 23,918 19,071 Property, less accumulated depreciation 17,531 17,402 17,653 Operating lea

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) Note 1: Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed consolidated financial statements (unaudited) and notes to the condensed consolidated financial statements (unaudited) are presented in accordance with the rules and regulations of the Securities and Exchange Commission and do not include all the disclosures normally required in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The condensed consolidated financial statements (unaudited), in the opinion of management, contain all normal recurring adjustments necessary to present fairly the consolidated balance sheets as of May 3, 2024, and May 5, 2023, and the statements of earnings, comprehensive income, shareholders' deficit, and cash flows for the three months ended May 3, 2024, and May 5, 2023. The February 2, 2024, consolidated balance sheet was derived from the audited financial statements. These interim condensed consolidated financial statements (unaudited) should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Lowe's Companies, Inc. (the Company) Annual Report on Form 10-K for the fiscal year ended February 2, 2024 (the Annual Report). The financial results for the interim periods may not be indicative of the financial results for the entire fiscal year. Accounting Pronouncements Not Yet Adopted There have been no significant changes in the accounting pronouncements not yet adopted from those disclosed in the Annual Report. Accounting pronouncements not disclosed in this Form 10-Q or in the Annual Report are either not applicable to the Company or are not expected to have a material impact to the Company. Note 2: Revenue Net sales consists primarily of revenue, net of sales tax, associated with contracts with customers for the sale o

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