As part of a Wall Street beat, Lowe’s sales and earnings topped analyst estimates as the company continues developing its own-brand and fulfillment strategies, among others.
For the quarter, Lowe’s posted net earnings of $1.21 billion, or $1.78 per diluted share, versus $978 million, or $1.32 per diluted share, in the year-before period.
In that year-before period, factoring in Canadian restructuring resulted in an adjusted diluted earnings per share of $1.33.
Lowe’s beat a Yahoo Finance-published diluted earnings per share estimate of $1.71 and a sales estimate of $20.9 billion.
Comparable sales increased 5% in the quarter year over year. Comparable sales for the home improvement business in the United States increased 5.1% for the fourth quarter versus the period a year past. Pro customer sales gained 23% year over year, Lowe’s pointed out.
Net sales were $21.34 billion versus $20.31 billion in the year-earlier quarter, the company reported. Operating income was $1.85 billion versus $1.52 billion in the year-prior quarter.
For the full year, Lowe’s posted net earnings of $8.44 billion, or $12.04 per diluted share, versus $5.84 billion, or $7.75 per diluted share, in the year before.
Net sales were $96.25 billion versus $89.6 billion in the year-earlier, the company stated. Operating income was $12.09 billion versus $9.65 billion in the year prior.
In a conference call, Marvin Ellison, Lowe’s chairman, president and CEO, said home decor own-brands were an important market share driver in the consumer-based DIY business. On the digital end, Lowe’s is expanding its same-day and next-day fulfillment capabilities, “piloting several gig network solutions including partnering with Instacart in several markets for same-day DIY home delivery,” he said.
He added that Lowe’s is moving from an inefficient store-based delivery model for big and bulky products to a market-based version where such items flow directly from the supply chain. Lowe’s also is freeing up store backroom space and testing different options to drive expanded in-store fulfillment and delivery alternatives for pro and DIY customers.
“We delivered another year of outstanding performance in 2021, as we gained market share across DIY and pro through our Total Home strategy,” Ellison said, announcing the financial results. “I would like to thank our front-line associates for their tremendous efforts this year. In 2021, we increased comparable sales by 6.9% while generating over 170 basis points of operating margin improvement, with our relentless focus on productivity and enhanced pricing strategies. We remain confident in the long-term strength of the home improvement market, and our ability to expand operating margin.”