Lowe’s expects total sales of approximately $97 to $98 billion for its full 2022 fiscal year.
Lowe’s Companies reaffirmed its full-year 2022 financial outlookas the end of the year approaches.
The home improvement also announced a new share repurchase program as part of a presentation on its key growth initiatives and long-term financial targets ahead of its 2022 investor’s day on Wednesday in New York City.
Lowe’s expects total sales of approximately $97 to $98 billion for its full 2022 year, which includes a 53rd week (compared to last year’s 52-week year). The extra week is expected to increase total sales by approximately $1.0 to $1.5 billion.
Comparable sales are expected to be flat to down 1% as compared to prior year. Capital expenditures are expected to be up to $2 billion
In November, Lowe’s entered into a definitive agreement to sell its Canadian retail business to Sycamore Partners for $400 million in cash, plus a performance-based deferred consideration. The transaction is expected to close in early 2023. Lowe’s noted on Wednesday that the Canadian retail business represents less than 6% of consolidated full year 2022 sales outlook and approximately 60 basis points of dilution on the consolidated full year 2022 adjusted operating margin outlook.
Citing the “uncertain nature of the sector’s performance and range of possible outcomes,” Lowe’s gave several different fiscal 2023 scenarios. Total sales are expected to come in at $92 billion in a “robust” market, at $90 billion in a “moderate” market and at $87 billion in a “weak” market. (Each scenario assumes that the sale of Lowe’s Canadian business is complete at the end of fiscal 2022.)
Lowe’s also revealed its plans for growth across its five focus areas. These include deepening penetration among its “pro” customers, accelerating its online business and expanding installation services. Rounding out the top five: driving localization and elevating the product assortment.
"We are building on our momentum with the next chapter of our Total Home strategy, designed to enhance our omnichannel capabilities and position Lowe's as a one-stop shop for DIY and Pro customers to get everything they need across all of their projects," said Marvin R. Ellison, Lowe's chairman, president and CEO. "We remain committed to our best-in-class capital allocation strategy, centered around investing in our strategic growth imperatives, enhancing returns and delivering long-term shareholder value."
Lowe’s announced that, based on “its confidence in the company's continued momentum and strong cash generation capabilities,” the board has authorized a new $15 billion common stock repurchase program. The new repurchase program has no expiration date and adds to the previous program's balance, which was $6.4 billion as of Dec. 6, 2022.
Lowe's and its related businesses operate or service nearly 2,200 home improvement and hardware stores and employ over 300,000 associates.