-- Fourth Quarter Net Earnings Increased 39 Percent --
-- Fourth Quarter Diluted Earnings Per Share Increased 50 Percent --
Sales for the quarter increased 3.1 percent to
"We delivered solid results for the quarter, including earnings that exceeded our guidance," commented
"While uncertainty in the market remains, the economic recovery is continuing," Niblock added. "We are committed to delivering better customer experiences and expect to grow market share in 2011 as we make continued progress on our key initiatives."
During the quarter, Lowe's opened 17 stores and closed two. As of
A conference call to discuss fourth quarter 2010 operating results is scheduled for today (
Lowe's Business Outlook
First Quarter 2011 (comparisons to first quarter 2010)
-- Total sales are expected to increase approximately 2 percent
-- The company expects comparable store sales to be approximately flat
-- The company expects square footage growth of approximately 2 percent
-- Earnings before interest and taxes as a percentage of sales (operating
margin) are expected to decrease 10 to 20 basis points
-- Depreciation expense is expected to be approximately $360 million
-- Diluted earnings per share of $0.34 to $0.38 are expected
-- Lowe's first quarter ends on April 29, 2011 with operating results to be
publicly released on Monday, May 16, 2011
Fiscal Year 2011 - a 53-week Year (comparisons to fiscal year 2010 - a 52-week year)
-- Total sales are expected to increase approximately 5 percent, including
the 53rd week
-- The 53rd week is expected to increase total sales by approximately 1.6
percent
-- The company expects comparable store sales to increase 1 to 2 percent
-- The company expects to open 25 to 30 stores in 2011 reflecting total
square footage growth of approximately 1.5 percent
-- Earnings before interest and taxes as a percentage of sales (operating
margin) are expected to increase approximately 30 basis points
-- Depreciation expense is expected to be approximately $1.48 billion
-- Diluted earnings per share of $1.60 to $1.72 are expected for the fiscal
year ending February 3, 2012
Disclosure Regarding Forward-Looking Statements
This news release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements of the company's expectations for sales growth, comparable store sales, earnings and performance, capital expenditures, store openings, the housing market, the home improvement industry, demand for services, share repurchases and any statement of an assumption underlying any of the foregoing, constitute "forward-looking statements" under the Act. Although the company believes that the expectations, opinions, projections, and comments reflected in its forward-looking statements are reasonable, it can give no assurance that such statements will prove to be correct. A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results expressed or implied by our forward-looking statements including, but not limited to, changes in general economic conditions, such as continued high rates of unemployment, interest rate and currency fluctuations, higher fuel and other energy costs, slower growth in personal income, changes in consumer spending, the availability and increasing regulation of consumer credit and of mortgage financing, inflation or deflation of commodity prices and other factors which can negatively affect our customers, as well as our ability to: (i) respond to adverse trends in the housing industry, such as the psychological effects of falling home prices and in the level of repairs, remodeling, and additions to existing homes, as well as a general reduction in commercial building activity; (ii) maintain critical information systems; (iii) ensure that customer facing technology systems perform efficiently and reliably; (iv) secure or develop and implement sufficiently robust new technologies to deliver business process solutions in an efficient manner; (v) attract, train, and retain highly-qualified associates who can respond to and embrace changes in our business model; (vi) respond to fluctuations in the prices and availability of services, supplies, and products; (vii) respond to the growth and impact of competition; (viii) differentiate ourselves from competitors based upon our relationships with suppliers of brand name products; (ix) address changes in existing or new laws or regulations that affect consumer credit, employment/labor, trade, product safety, transportation/logistics, energy costs, health care, tax or environmental issues; (x) respond to disruption of the domestic or international supply chain caused by transportation disruption, vendor disagreements, vendor failures, host country instability, trade tariffs, or international terrorism; (xi) adequately protect sensitive customer, employee or vendor information; (xii) respond to the unique challenges associated with international expansion, and (xiii) prevent material product liability associated with manufacturing or packaging defects. In addition, we could experience additional impairment losses if the actual results of our operating stores are not consistent with the assumptions and judgments we have made in estimating future cash flows and determining asset fair values. For more information about these and other risks and uncertainties that we are exposed to, you should read the "Risk Factors" and "Critical Accounting Policies and Estimates" included in our Annual Report on Form 10-K to the
The forward-looking statements contained in this news release are based upon data available as of the date of this release or other specified date and speak only as of such date. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf about any of the matters covered in this release are qualified by these cautionary statements and in the "Risk Factors" included in our Annual Report on Form 10-K to the
With fiscal year 2010 sales of
Lowe's Companies, Inc. Consolidated Statements of Current and Retained Earnings In Millions, Except Per Share Data Three Months Ended Year Ended (Unaudited) (Unaudited) (Unaudited) January 28, 2011 January 29, 2010 January 28, 2011 January 29, 2010 Current Amount Percent Amount Percent Amount Percent Amount Percent Earnings Net sales$ 10,480 100.00$ 10,168 100.00$ 48,815 100.00$ 47,220 100.00 Cost of sales 6,754 64.45 6,614 65.05 31,663 64.86 30,757 65.14 Gross margin 3,726 35.55 3,554 34.95 17,152 35.14 16,463 34.86 Expenses: Selling, general and 2,792 26.64 2,775 27.29 12,006 24.60 11,737 24.85 administrative Depreciation 392 3.74 401 3.95 1,586 3.25 1,614 3.42 Interest - net 86 0.82 56 0.55 332 0.68 287 0.61 Total expenses 3,270 31.20 3,232 31.79 13,924 28.53 13,638 28.88 Pre-tax 456 4.35 322 3.16 3,228 6.61 2,825 5.98 earnings Income tax 171 1.63 117 1.14 1,218 2.49 1,042 2.20 provision Net earnings$ 285 2.72$ 205 2.02$ 2,010 4.12$ 1,783 3.78 Weighted average common shares 1,358 1,455 1,401 1,462 outstanding - basic Basic earnings per common$ 0.21 $ 0.14 $ 1.42 $ 1.21 share(1) Weighted average common shares 1,361 1,458 1,403 1,464 outstanding - diluted Diluted earnings per$ 0.21 $ 0.14 $ 1.42 $ 1.21 common share (1) Cash dividends$ 0.110 $ 0.090 $ 0.420 $ 0.355 per share Retained Earnings Balance at beginning of$ 18,144 $ 18,236 $ 18,307 $ 17,049 period Net earnings 285 205 2,010 1,783 Cash dividends (148 ) (131 ) (588 ) (522 ) Share (910 ) (3 ) (2,358 ) (3 ) repurchases Balance at end$ 17,371 $ 18,307 $ 17,371 $ 18,307 of period (1)Under the two-class method, earnings per share is calculated using net earnings allocable to common shares, which is derived by reducing net earnings by the earnings allocable to participating securities. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were$283 million and$1,993 million for the three months and year endedJanuary 28, 2011 , respectively, and$204 million and$1,770 million for the three months and year endedJanuary 29, 2010 , respectively.
Lowe's Companies, Inc. Consolidated Balance Sheets In Millions, Except Par Value Data (Unaudited) January 28, 2011 January 29, 2010 Assets Current assets: Cash and cash equivalents$ 652 $ 632 Short-term investments 471 425 Merchandise inventory - net 8,321 8,249 Deferred income taxes - net 193 208 Other current assets 330 218 Total current assets 9,967 9,732 Property, less accumulated 22,089 22,499 depreciation Long-term investments 1,008 277 Other assets 635 497 Total assets$ 33,699 $ 33,005 Liabilities and Shareholders' Equity Current liabilities: Current maturities of long-term debt$ 36 $ 552 Accounts payable 4,351 4,287 Accrued compensation and employee 667 577 benefits Deferred revenue 707 683 Other current liabilities 1,358 1,256 Total current liabilities 7,119 7,355 Long-term debt, excluding current 6,537 4,528 maturities Deferred income taxes - net 467 598 Deferred revenue - extended 631 549 protection plans Other liabilities 833 906 Total liabilities 15,587 13,936 Shareholders' equity: Preferred stock -$5 par value, none - - issued Common stock -$.50 par value; Shares issued and outstanding January 28, 2011 1,354 January 29, 2010 1,459 677 729 Capital in excess of par value 11 6 Retained earnings 17,371 18,307 Accumulated other comprehensive 53 27 income Total shareholders' equity 18,112 19,069 Total liabilities and shareholders'$ 33,699 $ 33,005 equity
Lowe's Companies, Inc. Consolidated Statements of Cash Flows In Millions Years Ended (Unaudited) January 28, 2011 January 29, 2010 Cash flows from operating activities: Net earnings$ 2,010 $ 1,783 Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation and amortization 1,684 1,733 Deferred income taxes (133 ) (123 ) Loss on property and other assets - net 103 193 Share-based payment expense 115 102 Net changes in operating assets and liabilities: Merchandise inventory - net (64 ) (28 ) Other operating assets (142 ) 7 Accounts payable 60 175 Other operating liabilities 219 212 Net cash provided by operating activities 3,852 4,054 Cash flows from investing activities: Purchases of investments (2,605 ) (1,827 ) Proceeds from sale/maturity of investments 1,822 1,784 Increase in other long-term assets (97 ) (62 ) Property acquired (1,329 ) (1,799 ) Proceeds from sale of property and other 25 18 long-term assets Net cash used in investing activities (2,184 ) (1,886 ) Cash flows from financing activities: Net decrease in short-term borrowings - (1,007 ) Net proceeds from issuance of long-term debt 1,985 10 Repayment of long-term debt (552 ) (37 ) Proceeds from issuance of common stock under 104 128 share-based payment plans Cash dividend payments (571 ) (391 ) Repurchase of common stock (2,618 ) (504 ) Excess tax benefits of share-based payments 1 - Net cash used in financing activities (1,651 ) (1,801 ) Effect of exchange rate changes on cash 3 20 Net increase in cash and cash equivalents 20 387 Cash and cash equivalents, beginning of year 632 245 Cash and cash equivalents, end of year$ 652 $ 632
Source: Lowe's Companies, Inc.