{"id":383692,"date":"2020-11-18T06:03:39","date_gmt":"2020-11-18T11:03:39","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=383692"},"modified":"2020-11-18T06:03:39","modified_gmt":"2020-11-18T11:03:39","slug":"lowes-reports-third-quarter-2020-sales-and-earnings-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/lowes-reports-third-quarter-2020-sales-and-earnings-results\/","title":{"rendered":"Lowe’s Reports Third Quarter 2020 Sales And Earnings Results"},"content":{"rendered":"
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— U.S. Comparable Sales Increased 30.4% —<\/h2>\n

— Diluted EPS of $0.91 which Includes $1.05 Negative Impact from Extinguishment of Debt —<\/h2>\n

— Adjusted Diluted EPS of $1.98(1) —<\/h2>\n

— Lowes.com Sales Increased 106% —<\/h2>\n

— Company Invested over $1.1 Billion Year-to-Date to Support Associates, Store Safety and Communities in Response to COVID-19 —<\/h2>\n

— Company Provides Fourth Quarter 2020 Financial Outlook —<\/h2>\n

PR Newswire<\/p>\n<\/p><\/div>\n

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\n MOORESVILLE, N.C.<\/span>, Nov.\u00a018, 2020 \/PRNewswire\/ —\u00a0Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $692 million<\/span> and diluted earnings per share (EPS) of $0.91<\/span> for the quarter ended October\u00a030, 2020, which included a $1.1 billion<\/span> pre-tax loss on extinguishment of debt in connection with the company’s third quarter $3.0 billion<\/span> cash tender offer, compared to net earnings of $1.0 billion<\/span> and diluted EPS of $1.36<\/span> in the third quarter of 2019.\u00a0 Excluding these charges,\u00a0third quarter adjusted diluted EPS increased 40 percent to $1.98<\/span> from adjusted diluted EPS of $1.41<\/span> in the third quarter of 20191<\/sup>. <\/p>\n

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\n \"Lowe's
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Sales for the third quarter were $22.3 billion<\/span> compared to $17.4 billion<\/span> in the third quarter of 2019, and comparable sales increased 30.1 percent.\u00a0 Comparable sales for the U.S. home improvement business increased 30.4 percent for the third quarter.<\/p>\n

In the third quarter, the Company invested $245 million<\/span> in COVID-related support of frontline hourly associates, bringing its total COVID-related associate financial support to more than $800 million<\/span> this year.\u00a0 As a reflection\u00a0of its commitment to supporting its associates and communities, Lowe’s has invested more than $1.1 billion<\/span> in COVID-related support for its associates, store safety and community pandemic relief through the first nine months of fiscal 2020.\u00a0 <\/p>\n

For the third quarter in a row, hourly associates at 100% of stores earned their “Winning Together” profit-sharing bonus, which totaled $104 million<\/span>.\u00a0 For further information on the Company’s safety protocols in response to COVID-19, please visit corporate.lowes.com\/covid-19-response.<\/p>\n

“Strong execution enabled us to meet continued broad-based demand, as we delivered over 15% growth in all merchandising departments, over 20% growth across all geographic regions. and triple-digit growth online.\u00a0 We continued to invest in the future growth of the company, including a $100 million<\/span> investment in the quarter as part of an ongoing effort to reset the layout of our U.S. stores, making them easier to shop with improved product adjacencies, especially for Pro customers.\u00a0 Our omni-channel transformation continued in the third quarter with further investments in Lowes.com and our supply chain.\u00a0\u00a0 I remain confident that we are making the right strategic investments to deliver sustainable, long-term growth.\u00a0 I would also like to thank our outstanding frontline associates for their unwavering commitment to customer service and safety,” commented Marvin R. Ellison<\/span>, Lowe’s president and CEO. <\/p>\n

\n Capital Allocation<\/b>\n <\/p>\n

The Company reinstated its share repurchase program, and repurchased 3.6 million shares for $621 million<\/span> during the quarter, while it also paid $416 million<\/span> in dividends.\u00a0 <\/p>\n

During the quarter, the Company made a cash tender offer for $3.0 billion<\/span> of higher-coupon bonds, and issued $4.0 billion<\/span> of senior unsecured notes at a weighted average interest rate of 2.17%, which is a record low in company history. These actions further strengthened the Company’s balance sheet by lowering its annual interest expense.<\/p>\n

At quarter-end, the Company had $8.2 billion<\/span> of cash and cash equivalents as well as $3.0 billion<\/span> in undrawn capacity on its revolving credit facilities, which will be available for any unanticipated liquidity needs.\u00a0 <\/p>\n

As of October\u00a030, 2020, Lowe’s operated 1,969 home improvement and hardware stores in the United States<\/span> and Canada<\/span> representing 208 million square feet of retail selling space.<\/p>\n

A conference call to discuss third quarter 2020 operating results is scheduled for today, Wednesday, November\u00a018, at 9:00 am ET<\/span>.\u00a0 The conference call will be available by webcast and can be accessed by visiting Lowe’s website at ir.lowes.com and clicking on Lowe’s Third Quarter 2020 Earnings Conference Call Webcast.\u00a0 Supplemental slides will be available approximately 15 minutes prior to the start of the conference call.\u00a0 A replay of the call will be archived at ir.lowes.com.<\/p>\n

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\n Lowe’s Business Outlook<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

On May 20, 2020<\/span>, the Company withdrew its financial guidance for fiscal year 2020 due to limited visibility into future business trends in this unprecedented operating environment.\u00a0 While the business environment remains uncertain, the Company is providing the following outlook for the operating results of the fourth quarter of 2020.<\/p>\n

\n Fourth Quarter 2020 Financial Outlook<\/b>\u00a0(comparisons to fourth quarter 2019)<\/p>\n