This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Lowe’s Reports Second Quarter Sales And Earnings Results

Stocks in this article: LOW

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 SEC and the description of material changes, if any, therein included in our Quarterly Reports on Form 10-Q. We expressly disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, change in circumstances, future events, or otherwise.

With fiscal year 2011 sales of $50.2 billion, Lowe’s Companies, Inc. is a FORTUNE ® 100 company that serves approximately 15 million customers a week at more than 1,745 home improvement stores in the United States, Canada and Mexico. Founded in 1946 and based in Mooresville, N.C., Lowe’s is the second-largest home improvement retailer in the world. For more information, visit Lowes.com.

 

Lowe's Companies, Inc.

Consolidated Statements of Current and Retained Earnings (Unaudited)

In Millions, Except Per Share and Percentage Data

 
      Three Months Ended   Six Months Ended    
August 3, 2012 July 29, 2011 August 3, 2012 July 29, 2011
Current Earnings         Amount   Percent   Amount Percent   Amount   Percent   Amount   Percent
Net sales $ 14,249   100.00 $ 14,543 100.00 $ 27,402   100.00 $ 26,728   100.00
 
Cost of sales 9,415 66.07 9,527 65.51 18,003 65.70 17,393 65.07
 
Gross margin 4,834 33.93 5,016 34.49 9,399 34.30 9,335 34.93
 
Expenses:
 
Selling, general and administrative 3,172 22.26 3,232 22.22 6,414 23.40 6,351 23.76
 
Depreciation 369 2.59 365 2.51 739 2.70 737 2.76
 
Interest - net 96 0.68 90 0.62 199 0.73 178 0.67
 
Total expenses 3,637 25.53 3,687 25.35 7,352 26.83 7,266 27.19
 
Pre-tax earnings 1,197 8.40 1,329 9.14 2,047 7.47 2,069 7.74
 
Income tax provision 450 3.15 499 3.43 772 2.82 777 2.91
 
Net earnings $ 747 5.25 $ 830 5.71 $ 1,275 4.65 $ 1,292 4.83
                                           
 

Weighted average common shares outstanding - basic

1,157 1,275 1,182 1,300
 
Basic earnings per common share (1) $ 0.64 $ 0.65 $ 1.07 $ 0.99
 
Weighted average common shares outstanding - diluted 1,159 1,278 1,183 1,303
 
Diluted earnings per common share (1) $ 0.64 $ 0.64 $ 1.07 $ 0.98
 
Cash dividends per share $ 0.16 $ 0.14 $ 0.30 $ 0.25
                                           
 
Retained Earnings                                          
Balance at beginning of period $ 14,557 $ 16,715 $ 15,852 $ 17,371
Net earnings 747 830 1,275 1,292
Cash dividends (184 ) (176 ) (350 ) (322 )
Share repurchases (921 ) (1,309 ) (2,578 ) (2,281 )
Balance at end of period $ 14,199 $ 16,060 $ 14,199 $ 16,060
                                           
 
 

(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 $742 million for the three months ended August 3, 2012 and $823 million for the three months ended July 29, 2011. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $1,266 million for the six months ended August 3, 2012 and $1,281 million for the six months ended July 29, 2011.

 

Lowe's Companies, Inc.

Consolidated Statements of Comprehensive Income (Unaudited)

In Millions, Except Percentage Data

 
          Three Months Ended       Six Months Ended    
August 3, 2012 July 29, 2011 August 3, 2012 July 29, 2011
Amount   Percent   Amount Percent Amount   Percent   Amount   Percent
Net earnings $ 747 5.25 $ 830 5.71 $ 1,275 4.65 $ 1,292 4.83
 
Foreign currency translation adjustments (8 ) (0.05 ) (4 ) (0.03 ) (1 ) (0.00 ) 27 0.10
 
Net unrealized investment gains 3 0.01 1 0.01 2 0.01 2 0.01
 
Other comprehensive (loss)/income (5 ) (0.04 ) (3 ) (0.02 ) 1 0.01 29 0.11
 
Comprehensive income     $   742     5.21     $ 827   5.69     $ 1,276     4.66     $ 1,321     4.94
 
     

Lowe's Companies, Inc.

Consolidated Balance Sheets
In Millions, Except Par Value Data
                         
(Unaudited)   (Unaudited)  
August 3, 2012 July 29, 2011 February 3, 2012

Assets

 

Current assets:

Cash and cash equivalents $ 1,710 $ 568 $ 1,014
Short-term investments 586 340 286
Merchandise inventory - net 8,699 8,825 8,355
Deferred income taxes - net 279 222 183
Other current assets   325   213   234
 
Total current assets 11,599 10,168 10,072
 
Property, less accumulated depreciation 21,734 22,195 21,970
Long-term investments 485 857 504
Other assets   1,214   825   1,013
 
Total assets $ 35,032 $ 34,045 $ 33,559
 
Liabilities and shareholders' equity
 
Current liabilities:
Current maturities of long-term debt $ 594 $ 39 $ 592
Accounts payable 5,084 5,378 4,352
Accrued compensation and employee benefits 561 495 613
Deferred revenue 847 831 801
Other current liabilities   1,936   1,934   1,533
 
Total current liabilities 9,022 8,677 7,891
 

Long-term debt, excluding current maturities

9,008 6,581 7,035
Deferred income taxes - net 580 479 531
Deferred revenue - extended protection plans 726 673 704
Other liabilities   872   856   865
 
Total liabilities   20,208   17,266   17,026
 
Shareholders' equity:
Preferred stock - $5 par value, none issued - - -
Common stock - $.50 par value;
Shares issued and outstanding
August 3, 2012 1,152
July 29, 2011 1,260
February 3, 2012 1,241 576 630 621
Capital in excess of par value 2 7 14
Retained earnings 14,199 16,060 15,852
Accumulated other comprehensive income   47   82   46
 
Total shareholders' equity   14,824   16,779   16,533
 
Total liabilities and shareholders' equity $ 35,032 $ 34,045 $ 33,559
 
Lowe's Companies, Inc.            
Consolidated Statements of Cash Flows (Unaudited)
In Millions
                 
Six Months Ended
August 3, 2012     July 29, 2011

Cash flows from operating activities:

Net earnings $ 1,275 $ 1,292

Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization 789 786
Deferred income taxes (59 ) (50 )
Loss on property and other assets - net 36 100
Loss on equity method investments 29 4
Share-based payment expense 54 59
Net changes in operating assets and liabilities:
Merchandise inventory - net (345 ) (495 )
Other operating assets (159 ) 121
Accounts payable 731 1,026
Other operating liabilities 445 450
Net cash provided by operating activities 2,796 3,293
 
Cash flows from investing activities:
Purchases of investments (1,176 ) (948 )
Proceeds from sale/maturity of investments 897 1,232
Property acquired (622 ) (780 )
Change in equity method investments - net (159 ) (204 )
Proceeds from sale of property and other long-term assets 49 20
Other - net (21 ) (14 )
Net cash used in investing activities (1,032 ) (694 )
 
Cash flows from financing activities:
Net proceeds from issuance of long-term debt 1,984 -
Repayment of long-term debt (20 ) (18 )

Proceeds from issuance of common stock under share-based payment plans

90 55
Cash dividend payments (340 ) (294 )
Repurchase of common stock (2,793 ) (2,433 )
Other - net 13 3
Net cash used in financing activities (1,066 ) (2,687 )
 
Effect of exchange rate changes on cash (2 ) 4
 
Net increase/(decrease) in cash and cash equivalents 696 (84 )
Cash and cash equivalents, beginning of period 1,014 652
Cash and cash equivalents, end of period $ 1,710 $ 568




4 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs