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logoArgusNovember 27, 2023

Lowe's Companies, Inc.: Reaffirming BUY following fiscal 3Q results

Consumer Cyclical
Current Price
Price Target
Earnings Estimate

Lowe's is the world's second-largest home improvement retailer, with sales of $97 billion in FY23. Based in Mooresville, North Carolina, the company operated over 1,700 home improvement and hardware stores in the U.S. at the end of FY23. Retail selling space was about 200 million square feet. Home Decor, which includes appliances and paint, was the biggest merchandise division at 35% of FY22 sales. Building Products, including lumber, was 32%; Hardlines, including tools, seasonal, and lawn & garden, was 30%; Other categories represented 3% of sales. About 75% of sales are to individuals and 25% are to maintenance, repair, operations and construction professionals. The states with more than 100 stores at the end of FY22 were Texas, Florida, North Carolina and California. Online sales were 5% of the company's total in FY20 and rose to about 7% at the end of FY21 and 11% in 4Q23. The company's fiscal year ends on the Friday closest to the end of January. Based on the fiscal calendar, FY17 had a 53rd week, which happens about every five years. The FY23 was also 53-week fiscal year. FY24 will end on February 2, 2024.

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Analyst Profile

Chris Graja, CFA

Senior Analyst: Retail
Chris covers the Consumer sector for Argus. He was the #1 Stock Picker in the Household Durables sector, winning the 2019 StarMine U.S. Analyst award from Refinitiv. He was the #1 Stock Picker in Food and Staples Retailing, winning back-to-back U.S. Analyst Awards in 2015 and 2016. He received a prestigious Volunteer of the Year award from the New York Society of Security Analysts in 2000. Prior to Argus, Chris spent 16 years at Bloomberg Financial Markets. He was the Director of Training and a Senior Researcher for Bloomberg’s research division before joining the new Bloomberg magazine as Technical Studies Editor in 1993. He rose to Executive Markets Editor of the publishing group. Chris co-authored the book “Investing in Small-Cap Stocks,” which was published in three U.S. editions, an audio book, and two Chinese editions. Chris earned an MBA from Rutgers University. He is a CFA charterholder.