The company reported that it recorded net sales in Q2/21 of $27.6 billion, compared to $27.3 billion in Q2/20. The firm indicated that comparable sales in Q2/21 decreased by 1.6% overall and stated that sales for its U.S. home improvement business decreased by 2.2% during the same period.
Lowe's Companies advised that in Q2/21 it posted net earnings of $3.0 billion, or $4.25 per diluted share, versus net earnings of $2.8 billion, or $3.74 per diluted share in Q2/20.
The company highlighted that for the sixth consecutive quarter, all its stores without exception, met performance goals to earn a "Winning Together profit-sharing bonus." Lowe's mentioned that in aggregate $91 million will be paid to front-line hourly associates and commented that the amount is $20 million above the target level.
Lowe's Chairman, President, and CEO Marvin R. Ellison commented, "Our strong results this quarter demonstrate that our Total Home strategy is working, with U.S. sales comps up 32% on a two-year basis. In the quarter, we drove 21% growth in Pro, 10% growth in Installation Services, and strong comps across Decor product categories. On Lowe's.com, sales grew 7% on top of 135% growth last year."
"We also delivered significant operating margin expansion through our disciplined focus on driving productivity across the company. I am confident in the positive outlook for our industry, and our ability to drive operating margin expansion and market share gains," Ellison added.
The firm noted in the news release that it is continuing with its share repurchase program and indicated that during Q2/21, the company repurchased 16.4 million shares for $3.1 billion. The company advised that in addition it paid $430 million in dividends to stockholders. Lowe's mentioned that during FY/21 its plans call for the repurchase of a minimum of $9 billion in its shares.
Lowe's listed that as of July 30, 2021, it owned 1,973 home improvement and hardware stores in Canada and the U.S. and in addition serviced around 230 dealer-owned stores.
The company stated that in H1/21 it was able to deliver very strong financial results and noted that sales are trending higher in August.
The company provided some forward guidance and stated that it is raising its outlook for FY/21 operating results. Lowe's advised that it expects total revenues of around $92 billion for FY/21, which represents about a 30% growth in comparable sales on a two-year basis. The firm added that it now expects a slight increase in the gross margin (rate) for FY/21, compared to the prior year. Lowe's added further that it estimates that operating income as a percentage of sales will be approximately 12.2%.
Lowe's is a home improvement store operator headquartered in Mooresville, N.C. The company employs over 300,000 associates at 2,200 home improvement stores and serves 20 million customers weekly in the U.S. and Canada. The firm offers a wide range of products and services for maintenance, repair, decorating and remodeling, and installation for use by homeowners, renters, and professional trade contractors.
Lowe's started the day with a market cap of around $128.8 billion with approximately 706.9 million shares outstanding and a short interest of about 1.4%. LOW shares opened almost 4% higher today at $189.25 (+$6.99, +3.80%) over yesterday's $182.26 closing price. The stock has traded today between $188.50 and $203.7199 per share and closed for trading at $199.70 (+$19.44, +9.57%).
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