-- Fourth Quarter Comparable Store Sales Increased 1.9 Percent --
-- Announces
Sales for the fourth quarter decreased 5.0 percent to
The 53rd week contributed
Comparable store sales for the fourth quarter of 2012 increased 1.9 percent on a consolidated basis as well as for the U.S. business. For the fiscal year, comparable store sales increased 1.4 percent, while comparable store sales for the U.S. business increased 1.5 percent. Comparable store sales are based on comparable 13-week and 52-week periods, respectively.
“We delivered solid results in the fourth quarter,” commented Robert A. Niblock, Lowe’s chairman, president and CEO. “Our results are a testament to the team’s success in driving more balanced performance across the quarter, our response to the demand created by recovery efforts in the wake of superstorm Sandy, and the momentum we’re creating with our initiatives.
“I’d like to thank our employees for their perseverance in a year of significant change, and for their continued dedication to serving customers,” Niblock added.
Delivering on the commitment to return excess cash to shareholders, the company repurchased
To further deliver on this commitment, the Board of Directors has authorized the repurchase of up to
As of
A conference call to discuss fourth quarter 2012 operating results is scheduled for today (
Lowe’s Business Outlook
Fiscal Year 2013 (comparisons to fiscal year 2012; based on U.S. GAAP unless otherwise noted)
- Total sales are expected increase approximately 4 percent.
- Comparable store sales are expected to increase approximately 3.5 percent.
- The company expects to open approximately 10 stores in fiscal year 2013.
- Earnings before interest and taxes as a percentage of sales (operating margin) are expected to increase approximately 60 basis points.
- The effective income tax rate is expected to be approximately 38.1%.
- Diluted earnings per share of approximately
$2.05 are expected for the fiscal year endingJanuary 31, 2014 .
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, shareholder value, capital expenditures, cash flows, store openings, the housing market, the home improvement industry, demand for services, share repurchases, the Company’s strategic initiatives and any statement of an assumption underlying any of the foregoing, constitute "forward-looking statements" under the Act. Although we believe that the expectations, opinions, projections, and comments reflected in these forward-looking statements are reasonable, we 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 either 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, changes in the rate of housing turnover, 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 lower 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) secure, develop, and otherwise implement new technologies and processes designed to enhance our efficiency and competitiveness; (iii) attract, train, and retain highly-qualified associates; (iv) manage our business effectively as we adapt our traditional operating model to meet the changing expectations of our customers; (v) to maintain, improve, upgrade and protect our critical information systems; (vi) respond to fluctuations in the prices and availability of services, supplies, and products; (vii) respond to the growth and impact of competition; (viii) 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; and (ix) respond to unanticipated weather conditions that could adversely affect sales. 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 the “Risk Factors” included in our Annual Report on Form 10-K to the
With fiscal year 2012 sales of
Consolidated Statements of Current and Retained Earnings | ||||||||||||||||||||||||||
In Millions, Except Per Share and Percentage Data | ||||||||||||||||||||||||||
Three Months Ended (1) |
Year Ended (1) |
|||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
Current Earnings | Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||
Net sales | $ | 11,046 | 100.00 | $ | 11,629 | 100.00 | $ | 50,521 | 100.00 | $ | 50,208 | 100.00 | ||||||||||||||
Cost of sales | 7,261 | 65.73 | 7,650 | 65.78 | 33,194 | 65.70 | 32,858 | 65.44 | ||||||||||||||||||
Gross margin | 3,785 | 34.27 | 3,979 | 34.22 | 17,327 | 34.30 | 17,350 | 34.56 | ||||||||||||||||||
Expenses: | ||||||||||||||||||||||||||
Selling, general and administrative | 2,809 | 25.43 | 3,009 | 25.88 | 12,244 | 24.24 | 12,593 | 25.08 | ||||||||||||||||||
Depreciation | 412 | 3.73 | 383 | 3.29 | 1,523 | 3.01 | 1,480 | 2.95 | ||||||||||||||||||
Interest - net | 109 | 0.99 | 102 | 0.88 | 423 | 0.84 | 371 | 0.74 | ||||||||||||||||||
Total expenses | 3,330 | 30.15 | 3,494 | 30.05 | 14,190 | 28.09 | 14,444 | 28.77 | ||||||||||||||||||
Pre-tax earnings | 455 | 4.12 | 485 | 4.17 | 3,137 | 6.21 | 2,906 | 5.79 | ||||||||||||||||||
Income tax provision | 167 | 1.51 | 163 | 1.40 | 1,178 | 2.33 | 1,067 | 2.13 | ||||||||||||||||||
Net earnings | $ | 288 | 2.61 | $ | 322 | 2.77 | $ | 1,959 | 3.88 | $ | 1,839 | 3.66 | ||||||||||||||
Weighted average common shares outstanding - basic | 1,109 | 1,239 | 1,150 | 1,271 | ||||||||||||||||||||||
Basic earnings per common share (2) | $ | 0.26 | $ | 0.26 | $ | 1.69 | $ | 1.43 | ||||||||||||||||||
Weighted average common shares outstanding - diluted | 1,112 | 1,241 | 1,152 | 1,273 | ||||||||||||||||||||||
Diluted earnings per common share (2) | $ | 0.26 | $ | 0.26 | $ | 1.69 | $ | 1.43 | ||||||||||||||||||
Cash dividends per share | $ | 0.16 | $ | 0.14 | $ | 0.62 | $ | 0.53 | ||||||||||||||||||
|
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Retained Earnings | ||||||||||||||||||||||||||
Balance at beginning of period | $ | 13,602 | $ | 16,109 | $ | 15,852 | $ | 17,371 | ||||||||||||||||||
Net earnings | 288 | 322 | 1,959 | 1,839 | ||||||||||||||||||||||
Cash dividends | (178 | ) | (174 | ) | (708 | ) | (672 | ) | ||||||||||||||||||
Share repurchases | (488 | ) | (405 | ) | (3,879 | ) | (2,686 | ) | ||||||||||||||||||
Balance at end of period | $ | 13,224 | $ | 15,852 | $ | 13,224 | $ | 15,852 | ||||||||||||||||||
(1) The fiscal year and three months ended |
|
(2) 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 |
|
Consolidated Statements of Comprehensive Income | ||||||||||||||||||||||||
In Millions, Except Percentage Data | ||||||||||||||||||||||||
Three Months Ended (1) | Year Ended (1) | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||
Net earnings | $ | 288 | 2.61 | $ | 322 | 2.77 | $ | 1,959 | 3.88 | $ | 1,839 | 3.66 | ||||||||||||
Foreign currency translation adjustments | - | - | (1 | ) | - | 6 | 0.01 | (8 | ) | (0.02 | ) | |||||||||||||
Net unrealized investment (losses)/gains | - | - | - | - | - | - | 1 | - | ||||||||||||||||
Other comprehensive (loss)/income | - | - | (1 | ) | - | 6 | 0.01 | (7 | ) | (0.02 | ) | |||||||||||||
Comprehensive income | $ | 288 | 2.61 | $ | 321 | 2.77 | $ | 1,965 | 3.89 | $ | 1,832 | 3.64 |
(1) The fiscal year and three months ended |
Consolidated Balance Sheets | ||||||
In Millions, Except Par Value Data | ||||||
(Unaudited) | ||||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 541 | $ | 1,014 | ||
Short-term investments | 125 | 286 | ||||
Merchandise inventory - net | 8,600 | 8,355 | ||||
Deferred income taxes - net | 217 | 183 | ||||
Other current assets | 301 | 234 | ||||
Total current assets | 9,784 | 10,072 | ||||
Property, less accumulated depreciation | 21,477 | 21,970 | ||||
Long-term investments | 271 | 504 | ||||
Other assets | 1,134 | 1,013 | ||||
Total assets | $ | 32,666 | $ | 33,559 | ||
Liabilities and Shareholders' Equity | ||||||
Current liabilities: | ||||||
Current maturities of long-term debt | $ | 47 | $ | 592 | ||
Accounts payable | 4,657 | 4,352 | ||||
Accrued compensation and employee benefits | 670 | 613 | ||||
Deferred revenue | 824 | 801 | ||||
Other current liabilities | 1,510 | 1,533 | ||||
Total current liabilities | 7,708 | 7,891 | ||||
Long-term debt, excluding current maturities | 9,030 | 7,035 | ||||
Deferred income taxes - net | 455 | 531 | ||||
Deferred revenue - extended protection plans | 715 | 704 | ||||
Other liabilities | 901 | 865 | ||||
Total liabilities | 18,809 | 17,026 | ||||
Shareholders' equity: | ||||||
Preferred stock - |
- | - | ||||
Common stock - |
||||||
Shares issued and outstanding | ||||||
1,110 | ||||||
1,241 | 555 | 621 | ||||
Capital in excess of par value | 26 | 14 | ||||
Retained earnings | 13,224 | 15,852 | ||||
Accumulated other comprehensive income | 52 | 46 | ||||
Total shareholders' equity | 13,857 | 16,533 | ||||
Total liabilities and shareholders' equity | $ | 32,666 | $ | 33,559 | ||
Consolidated Statements of Cash Flows | ||||||||
In Millions | ||||||||
Year Ended | ||||||||
(Unaudited) | ||||||||
Cash flows from operating activities: | ||||||||
Net earnings | $ | 1,959 | $ | 1,839 | ||||
Adjustments to reconcile net earnings to net cash provided by | ||||||||
operating activities: | ||||||||
Depreciation and amortization | 1,623 | 1,579 | ||||||
Deferred income taxes | (140 | ) | 54 | |||||
Loss on property and other assets - net | 83 | 456 | ||||||
Loss on equity method investments | 48 | 12 | ||||||
Share-based payment expense | 100 | 107 | ||||||
Net changes in operating assets and liabilities: | ||||||||
Merchandise inventory - net | (244 | ) | (33 | ) | ||||
Other operating assets | (87 | ) | 125 | |||||
Accounts payable | 303 | (5 | ) | |||||
Other operating liabilities | 117 | 215 | ||||||
Net cash provided by operating activities |
3,762 | 4,349 | ||||||
Cash flows from investing activities: | ||||||||
Purchases of investments | (1,444 | ) | (1,433 | ) | ||||
Proceeds from sale/maturity of investments | 1,837 | 2,120 | ||||||
Capital expenditures | (1,211 | ) | (1,829 | ) | ||||
Change in equity method investments | (219 | ) | (232 | ) | ||||
Proceeds from sale of property and other long-term assets | 130 | 52 | ||||||
Other - net | 4 | (115 | ) | |||||
Net cash used in investing activities | (903 | ) | (1,437 | ) | ||||
Cash flows from financing activities: | ||||||||
Net proceeds from issuance of long-term debt | 1,984 | 993 | ||||||
Repayment of long-term debt | (591 | ) | (37 | ) | ||||
Proceeds from issuance of common stock under |
349 | 100 | ||||||
Cash dividend payments |
(704 | ) | (647 | ) | ||||
Repurchase of common stock | (4,393 | ) | (2,937 | ) | ||||
Other - net | 22 | (21 | ) | |||||
Net cash used in financing activities | (3,333 | ) | (2,549 | ) | ||||
Effect of exchange rate changes on cash | 1 | (1 | ) | |||||
Net (decrease)/increase in cash and cash equivalents | (473 | ) | 362 | |||||
Cash and cash equivalents, beginning of year | 1,014 | 652 | ||||||
Cash and cash equivalents, end of year | $ | 541 | $ | 1,014 |
Lowe’s
Shareholders’/Analysts’ Inquiries:
[email protected]
or
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Source: Lowe’s