# EDGAR Filing Document

**Accession Number:** 0000060667
**File Stem:** 0000060667-23-000016
**Filing Date:** 2023-3
**Character Count:** 36393
**Document Hash:** 2db2a202b10622bf350c0d35729ad020
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000060667-23-000016.hdr.sgml**: 20230301

**ACCESSION NUMBER**: 0000060667-23-000016

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 21

**CONFORMED PERIOD OF REPORT**: 20230301

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230301

**DATE AS OF CHANGE**: 20230301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** LOWES COMPANIES INC
- **CENTRAL INDEX KEY:** 0000060667
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-LUMBER & OTHER BUILDING MATERIALS DEALERS [5211]
- **IRS NUMBER:** 560578072
- **STATE OF INCORPORATION:** NC
- **FISCAL YEAR END:** 0203

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-07898
- **FILM NUMBER:** 23689945

**BUSINESS ADDRESS:**
- **STREET 1:** 1000 LOWES BLVD.
- **CITY:** MOORESVILLE
- **STATE:** NC
- **ZIP:** 28117
- **BUSINESS PHONE:** 704-758-1000

**MAIL ADDRESS:**
- **STREET 1:** 1000 LOWES BLVD.
- **CITY:** MOORESVILLE
- **STATE:** NC
- **ZIP:** 28117

?xml version="1.0" ? low-20230301

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K** 

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): March 1, 2023**

![low-20230301_g1.jpg](low-20230301_g1.jpg)

**LOWE'S COMPANIES, INC.**

**(Exact name of registrant as specified in its charter)**

---

| | | |
|:---|:---|:---|
| **North Carolina** | **1-7898** | **56-0578072** |
| (State or other jurisdiction<br>of incorporation) | (Commission File<br>Number) | (IRS Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **1000 Lowes Blvd., Mooresville, NC** | **28117** |
| (Address of principal executive offices) | (Zip Code) |
| Registrant's telephone number, including area code: | **(704) 758-1000** |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Common Stock, par value $0.50 per share** | **LOW** | **New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

------

**Item 2.02&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.**

On March 1, 2023, Lowe's Companies, Inc. (the "Company") issued a press release and related infographic, furnished as Exhibits 99.1 and 99.2, respectively, and incorporated herein by reference, announcing the Company's financial results for its fourth quarter and year ended February 3, 2023.

The information provided pursuant to Item 2.02, including the exhibits attached hereto, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

**Item 9.01&nbsp;&nbsp;&nbsp;&nbsp;Financial Statements and Exhibits.**

(d) Exhibits:

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| <u>[99.1](exhibit991-02032023.htm)</u> | <u>[Press Release, dated](exhibit991-02032023.htm)[March 1, 2023](exhibit991-02032023.htm)[, announcing the financial results of Lowe's Companies, Inc. for its](exhibit991-02032023.htm)[fourth](exhibit991-02032023.htm)[quarter](exhibit991-02032023.htm)[and](exhibit991-02032023.htm)[year](exhibit991-02032023.htm)[ended](exhibit991-02032023.htm)[February 3, 2023](exhibit991-02032023.htm)[.](exhibit991-02032023.htm)</u> |
| <u>[99.2](exhibit992-02032023.htm)</u> | <u>[Infographic relating to the financial results of Lowe's Companies, Inc. for its](exhibit992-02032023.htm)[fourth](exhibit992-02032023.htm)[quarter](exhibit992-02032023.htm)[and year](exhibit992-02032023.htm)[ended](exhibit992-02032023.htm)[February 3, 2023](exhibit992-02032023.htm)[.](exhibit992-02032023.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**SIGNATURE**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **LOWE'S COMPANIES, INC.** | **LOWE'S COMPANIES, INC.** |
| Date: <u>March 1, 2023</u> | By: | <u>/s/ Dan C. Griggs, Jr.</u> |
|  | Name: | Dan C. Griggs, Jr. |
|  | Title: | Senior Vice President, Tax and Chief Accounting Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

![lowesgraphicimage01.jpg](lowesgraphicimage01.jpg)

**March 1, 2023** 

**For 6:00 a.m. ET Release** 

**LOWE'S REPORTS FOURTH QUARTER 2022 SALES AND EARNINGS RESULTS**

**— Diluted EPS of $1.58; Adjusted Diluted EPS**<sup>1</sup> **of $2.28 —**

**— U.S. Comparable Sales Decreased 0.7% —**

**— Provides Fiscal 2023 Outlook —**

**MOORESVILLE, N.C., March 1, 2023** – Lowe's Companies, Inc. (NYSE: LOW) today reported net earnings of $957 million and diluted earnings per share (EPS) of $1.58 for the quarter ended Feb. 3, 2023, compared to diluted EPS of $1.78 in the fourth quarter of 2021. Excluding the pre-tax transaction costs associated with the sale of our Canadian retail business, fourth quarter adjusted diluted EPS<sup>1</sup> increased 28% to $2.28 compared to the prior year.

Total sales for the fourth quarter were $22.4 billion compared to $21.3 billion in the fourth quarter of 2021. Comparable sales for the fourth quarter decreased 1.5%, and comparable sales for the U.S. home improvement business decreased 0.7%.

The fourth quarter of fiscal 2022 consisted of 14 weeks, compared with 13 weeks for the prior year. The 14<sup>th</sup> week added approximately $1.4 billion in sales for the quarter and the year. Comparable sales are based on a comparable number of weeks from the prior year.

In the fourth quarter, the company awarded $220 million in discretionary and profit-sharing bonuses to associates, including $70 million for our assistant store managers and supply chain supervisors and $150 million for eligible hourly associates.

"We continue to make strides on our Total Home strategy, with 10% Pro growth in the U.S. and 5% increase in Lowes.com sales. In recognition of the front-line leaders and associates who delivered these results, we are pleased to award $220 million in discretionary and profit-sharing bonuses," commented Marvin R. Ellison, Lowe's chairman, president and CEO. "I am confident we are making the right investments – in our associates and in our business – to drive long-term growth. We also continue to improve operating margin, demonstrating our ongoing focus on driving productivity across the company."

**Capital Allocation**

With a disciplined focus on its leading capital allocation program, the company continues to generate long-term shareholder value. During the quarter, the company repurchased approximately 10 million shares for $2.0 billion, and it repurchased 71 million shares for $14.1 billion for the year. Total share repurchases in 2022 were $1.1 billion higher than anticipated, reflecting better-than-expected operating performance and the company's commitment to return excess capital to shareholders.

The company also paid $643 million in dividends in the fourth quarter and $2.4 billion in dividends for the year. In total, the company returned $16.5 billion to shareholders through share repurchases and dividends in 2022.

<sup>1</sup> Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures Reconciliation" section of this release for additional information as well as reconciliations between the Company's GAAP and non-GAAP financial results.

------

<u>Lowe's Business Outlook</u>

The company is introducing its outlook for fiscal 2023.

**Full Year 2023 Outlook -- a 52-week Year (comparisons to full year 2022 -- a 53-week year)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total sales of approximately $88 – $90 billion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Comparable sales expected to be flat to down -2% as compared to prior year

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income as a percentage of sales (operating margin) of 13.6% to 13.8%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Effective income tax rate of approximately 25%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Diluted earnings per share of $13.60 to $14.00

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital expenditures of up to $2 billion

A conference call to discuss fourth quarter 2022 operating results is scheduled for today, Wednesday, March 1, at 9 a.m. ET. The conference call will be available by webcast and can be accessed by visiting Lowe's website at ir.lowes.com and clicking on Lowe's Fourth Quarter 2022 Earnings Conference Call Webcast. Supplemental slides will be available approximately 15 minutes prior to the start of the conference call. A replay of the call will be archived at ir.lowes.com.

<u>Lowe's Companies, Inc.</u>

Lowe's Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 17 million customer transactions a week in the U.S. With total fiscal year 2022 sales of over $97 billion, approximately $92 billion of sales were generated in the U.S., where Lowe's operates over 1,700 home improvement stores and employs approximately 300,000 associates. Based in Mooresville, N.C., Lowe's supports the communities it serves through programs focused on creating safe, affordable housing and helping to develop the next generation of skilled trade experts. For more information, visit Lowes.com.

------

<u>Disclosure Regarding Forward-Looking Statements</u>

This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believe", "expect", "anticipate", "plan", "desire", "project", "estimate", "intend", "will", "should", "could", "would", "may", "strategy", "potential", "opportunity", "outlook", "scenario", "guidance", and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives, business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services, share repurchases, Lowe's strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe's and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers.

Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in "Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.

LOW-IR

&nbsp;&nbsp;&nbsp;&nbsp;

###

---

| | | |
|:---|:---|:---|
| **Contacts:** | **Shareholder/Analyst Inquiries:** | **Media Inquiries:** |
| | Kate Pearlman | Steve Salazar |
| | 704-775-3856 | steve.j.salazar@lowes.com |
| | kate.pearlman@lowes.com | |

---

------

**Lowe's Companies, Inc.**

**Consolidated Statements of Current Earnings and (Accumulated Deficit)/Retained Earnings (Unaudited)**

In Millions, Except Per Share and Percentage Data

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** |
| | **February 3, 2023** | **February 3, 2023** | **January 28, 2022** | **January 28, 2022** | **February 3, 2023** | **February 3, 2023** | **January 28, 2022** | **January 28, 2022** |
|<br>**Current Earnings** | **Amount** | **% Sales** | **Amount** | **% Sales** | **Amount** | **% Sales** | **Amount** | **% Sales** |
| **Net sales** | $**22445** | **100.00** | $**21339** | **100.00** | $**97059** | **100.00** | $**96250** | **100.00** |
| Cost of sales | 15189 | 67.67 | 14312 | 67.07 | 64802 | 66.77 | 64194 | 66.70 |
| **Gross margin** | **7256** | **32.33** | **7027** | **32.93** | **32257** | **33.23** | **32056** | **33.30** |
| Expenses: |  |  |  |  |  |  |  |  |
| Selling, general and administrative | 5131 | 22.86 | 4741 | 22.21 | 20332 | 20.94 | 18301 | 19.01 |
| Depreciation and amortization | 421 | 1.88 | 437 | 2.05 | 1766 | 1.82 | 1662 | 1.73 |
| **Operating income** | **1704** | **7.59** | **1849** | **8.67** | **10159** | **10.47** | **12093** | **12.56** |
| Interest – net | 322 | 1.43 | 235 | 1.11 | 1123 | 1.16 | 885 | 0.92 |
| **Pre-tax earnings** | **1382** | **6.16** | **1614** | **7.56** | **9036** | **9.31** | **11208** | **11.64** |
| Income tax provision | 425 | 1.90 | 408 | 1.91 | 2599 | 2.68 | 2766 | 2.87 |
| **Net earnings** | $**957** | **4.26** | $**1206** | **5.65** | $**6437** | **6.63** | $**8442** | **8.77** |
| Weighted average common shares outstanding – basic | 603 |  | 673 |  | 629 |  | 696 |  |
| **Basic earnings per common share** <sup>(1)</sup> | $**1.58** |  | $**1.79** |  | $**10.20** |  | $**12.07** |  |
| Weighted average common shares outstanding – diluted | 605 |  | 676 |  | 631 |  | 699 |  |
| **Diluted earnings per common share** <sup>(1)</sup> | $**1.58** |  | $**1.78** |  | $**10.17** |  | $**12.04** |  |
| **Cash dividends per share** | $**1.05** |  | $**0.80** |  | $**3.95** |  | $**3.00** |  |
| **(Accumulated Deficit)/Retained Earnings** |  |  |  |  |  |  |  |  |
| **Balance at beginning of period** | $**(13313)** |  | $**(1913)** |  | $**(5115)** |  | $**1117** |  |
| Net earnings | 957 |  | 1206 |  | 6437 |  | 8442 |  |
| Cash dividends declared | (633) |  | (537) |  | (2466) |  | (2081) |  |
| Share repurchases | (1873) |  | (3871) |  | (13718) |  | (12593) |  |
| **Balance at end of period** | $**(14862)** |  | $**(5115)** |  | $**(14862)** |  | $**(5115)** |  |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>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 $954 million for the three months ended February 3, 2023, and $1,202 million for the three months ended January 28, 2022. Net earnings allocable to common shares used in the basic and diluted earnings per share calculation were $6,416 million for the fiscal year ended February 3, 2023, and $8,409 million for the fiscal year ended January 28, 2022.

**Lowe's Companies, Inc.**

**Consolidated Statements of Comprehensive Income (Unaudited)**

In Millions, Except Percentage Data

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** | **Fiscal Year Ended** |
| | **February 3, 2023** | **February 3, 2023** | **January 28, 2022** | **January 28, 2022** | **February 3, 2023** | **February 3, 2023** | **January 28, 2022** | **January 28, 2022** |
| | **Amount** | **% Sales** | **Amount** | **% Sales** | **Amount** | **% Sales** | **Amount** | **% Sales** |
| **Net earnings** | $**957** | **4.26** | $**1206** | **5.65** | $**6437** | **6.63** | $**8442** | **8.77** |
| &nbsp;&nbsp;Foreign currency translation adjustments – net of tax | 209 | 0.93 | (82) | (0.38) | 36 | 0.04 | (4) |  |
| &nbsp;&nbsp;&nbsp;Cash flow hedges – net of tax | (43) | (0.19) | 53 | 0.25 | 309 | 0.32 | 109 | 0.11 |
| &nbsp;&nbsp;Other | 2 | 0.01 | (1) | (0.01) | (2) |  | (5) | (0.01) |
| **Other comprehensive income/(loss)** | **168** | **0.75** | **(30)** | **(0.14)** | **343** | **0.36** | **100** | **0.10** |
| **Comprehensive income** | $**1125** | **5.01** | $**1176** | **5.51** | $**6780** | **6.99** | $**8542** | **8.87** |

---

------

**Lowe's Companies, Inc.**

**Consolidated Balance Sheets (Unaudited)**

In Millions, Except Par Value Data

---

| | | |
|:---|:---|:---|
| | **February 3, 2023** | **January 28, 2022** |
| **Assets** | | |
| &nbsp;&nbsp;&nbsp;**Current assets:** | | |
| &nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1348 | $1133 |
| &nbsp;&nbsp;&nbsp;Short-term investments | 384 | 271 |
| &nbsp;&nbsp;&nbsp;Merchandise inventory – net | 18532 | 17605 |
| &nbsp;&nbsp;&nbsp;Other current assets | 1178 | 1051 |
| &nbsp;&nbsp;&nbsp;**Total current assets** | **21442** | **20060** |
| &nbsp;&nbsp;&nbsp;Property, less accumulated depreciation | 17567 | 19071 |
| &nbsp;&nbsp;&nbsp;Operating lease right-of-use assets | 3518 | 4108 |
| &nbsp;&nbsp;&nbsp;Long-term investments | 121 | 199 |
| &nbsp;&nbsp;&nbsp;Deferred income taxes – net | 250 | 164 |
| &nbsp;&nbsp;&nbsp;Other assets | 810 | 1038 |
| &nbsp;&nbsp;&nbsp;**Total assets** | $**43708** | $**44640** |
| **Liabilities and shareholders' deficit** |  |  |
| &nbsp;&nbsp;&nbsp;**Current liabilities:** |  |  |
| &nbsp;&nbsp;&nbsp;Short-term borrowings | $499 | $— |
| &nbsp;&nbsp;&nbsp;Current maturities of long-term debt | 585 | 868 |
| &nbsp;&nbsp;&nbsp;Current operating lease liabilities | 522 | 636 |
| &nbsp;&nbsp;&nbsp;Accounts payable | 10524 | 11354 |
| &nbsp;&nbsp;&nbsp;Accrued compensation and employee benefits | 1109 | 1561 |
| &nbsp;&nbsp;&nbsp;Deferred revenue | 1603 | 1914 |
| &nbsp;&nbsp;&nbsp;Income taxes payable | 1181 | 128 |
| &nbsp;&nbsp;&nbsp;Other current liabilities | 3488 | 3207 |
| &nbsp;&nbsp;&nbsp;**Total current liabilities** | **19511** | **19668** |
| &nbsp;&nbsp;&nbsp;Long-term debt, excluding current maturities | 32876 | 23859 |
| &nbsp;&nbsp;&nbsp;Noncurrent operating lease liabilities | 3512 | 4021 |
| &nbsp;&nbsp;&nbsp;Deferred revenue – Lowe's protection plans | 1201 | 1127 |
| &nbsp;&nbsp;&nbsp;Other liabilities | 862 | 781 |
| &nbsp;&nbsp;&nbsp;**Total liabilities** | **57962** | **49456** |
| &nbsp;&nbsp;&nbsp;**Shareholders' deficit:** |  |  |
| &nbsp;&nbsp;Preferred stock, $5 par value: Authorized – 5.0 million shares; Issued and outstanding – none |  |  |
| &nbsp;&nbsp;Common stock, $0.50 par value: Authorized – 5.6 billion shares; Issued and outstanding – 601 million and 670 million, respectively | 301 | 335 |
| &nbsp;&nbsp;&nbsp;Capital in excess of par value |  |  |
| &nbsp;&nbsp;&nbsp;Accumulated deficit | (14862) | (5115) |
| &nbsp;&nbsp;&nbsp;Accumulated other comprehensive income/(loss) | 307 | (36) |
| &nbsp;&nbsp;&nbsp;**Total shareholders' deficit** | **(14254)** | **(4816)** |
| &nbsp;&nbsp;&nbsp;**Total liabilities and shareholders' deficit** | $**43708** | $**44640** |

---

------

**Lowe's Companies, Inc.**

**Consolidated Statements of Cash Flows (Unaudited)**

In Millions

---

| | | |
|:---|:---|:---|
| | **Fiscal Year Ended** | **Fiscal Year Ended** |
| | **February 3, 2023** | **January 28, 2022** |
| **Cash flows from operating activities:** | | |
| &nbsp;&nbsp;&nbsp;Net earnings | $6437 | $8442 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net earnings to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 1981 | 1882 |
| &nbsp;&nbsp;&nbsp;&nbsp;Noncash lease expense | 530 | 517 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (239) | 135 |
| &nbsp;&nbsp;&nbsp;&nbsp;Asset impairment and loss on property – net | 2118 | 34 |
| &nbsp;&nbsp;&nbsp;&nbsp;Loss on sale of business | 421 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Share-based payment expense | 223 | 230 |
| &nbsp;&nbsp;&nbsp;&nbsp;Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Merchandise inventory – net | (2594) | (1413) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating assets | 56 | (23) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (549) | 466 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred revenue | (183) | 413 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other operating liabilities | 388 | (570) |
| &nbsp;&nbsp;**Net cash provided by operating activities** | **8589** | **10113** |
| **Cash flows from investing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Purchases of investments | (1189) | (3065) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale/maturity of investments | 1174 | 3293 |
| &nbsp;&nbsp;&nbsp;Capital expenditures | (1829) | (1853) |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of property and other long-term assets | 45 | 113 |
| &nbsp;&nbsp;&nbsp;Proceeds from sale of business | 491 |  |
| &nbsp;&nbsp;&nbsp;Other – net | (1) | (134) |
| &nbsp;&nbsp;**Net cash used in investing activities** | **(1309)** | **(1646)** |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp;Net change in commercial paper | 499 |  |
| &nbsp;&nbsp;&nbsp;Net proceeds from issuance of debt | 9667 | 4972 |
| &nbsp;&nbsp;&nbsp;Repayment of debt | (867) | (2118) |
| &nbsp;&nbsp;&nbsp;Proceeds from issuance of common stock under share-based payment plans | 151 | 132 |
| &nbsp;&nbsp;&nbsp;Cash dividend payments | (2370) | (1984) |
| &nbsp;&nbsp;&nbsp;Repurchases of common stock | (14124) | (13012) |
| &nbsp;&nbsp;&nbsp;Other – net | (5) | (6) |
| &nbsp;&nbsp;**Net cash used in financing activities** | **(7049)** | **(12016)** |
| **Effect of exchange rate changes on cash** | **(16)** | **(8)** |
| Net increase/(decrease) in cash and cash equivalents | 215 | (3557) |
| Cash and cash equivalents, beginning of period | 1133 | 4690 |
| **Cash and cash equivalents, end of period** | $**1348** | $**1133** |

---

------

**Lowe's Companies, Inc.**

**Non-GAAP Financial Measure Reconciliation (Unaudited)**

To provide additional transparency, the Company has presented a comparison to the non-GAAP financial measure of adjusted diluted earnings per share for the three months ended February 3, 2023. This measure excludes the impact of a discrete item, further described below, not contemplated in Lowe's Business Outlook to assist analysts and investors in understanding operational performance for the fourth quarter of fiscal 2022.

*<u>Fiscal 2022 Impacts</u>*

During fiscal 2022, the Company recognized financial impacts from the following discrete item, not contemplated in the Company's Business Outlook for fiscal 2022:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In the fourth quarter of fiscal 2022, the Company recognized pre-tax transaction costs totaling $441 million, consisting of the loss on the sale and other closing costs associated with the sale of the Canadian retail business (Canadian retail business transaction costs).

Adjusted diluted earnings per share should not be considered an alternative to, or more meaningful indicator of, the Company's diluted earnings per share as prepared in accordance with GAAP. The Company's methods of determining non-GAAP financial measures may differ from the method used by other companies and may not be comparable.

A reconciliation between the Company's GAAP and non-GAAP financial results is shown below and available on the Company's website at ir.lowes.com.

---

| | | | |
|:---|:---|:---|:---|
| | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| | **February 3, 2023** | **February 3, 2023** | **February 3, 2023** |
| | **Pre-Tax Earnings** | **Tax**<sup>1</sup> | **Net Earnings** |
| **Diluted earnings per share, as reported** |  |  | $**1.58** |
| &nbsp;&nbsp;**Non-GAAP adjustments** – **per share impacts** |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Canada retail business transaction costs | 0.73 | (0.03) | 0.70 |
| **Adjusted diluted earnings per share** |  |  | $**2.28** |

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<sup>1</sup> *Represents the corresponding tax benefit or expense related to the item excluded from adjusted diluted earnings per share.*

## Exhibit 99.2

![](exhibit992-02032023001.jpg)

U.S. Comparable Sales Summary Product Category Performance Comp above company average in 6 of 14 product categories "We continue to make strides on our Total Home strategy, with 10% Pro growth in the U.S. and 5% increase in Lowes.com sales. I am confident we are making the right investments – in our associates and in our business – to drive long-term growth. We also continue to improve operating margin, demonstrating our ongoing focus on driving productivity." – Marvin R. Ellison, Chairman & CEO 8 of 15 Regions Delivered Comp Growth Above Company Average -3.1% -0.2% +1.4% +8.1% +7.4% -1.3% NOV DEC JAN 2022 2021 -6.7% -1.7% +2.1% <$50 $50–$500 >$500 U.S. Monthly Comp Performance U.S. Pro Comparable Sales U.S. Comp Sales by Ticket Size Associates Awarded $220 million in discretionary and profit-sharing bonuses to our associates COMP TRANSACTIONS COMP $100.71 AVERAGE TICKET LOWES.COM SALES GROWTH -5.5% +4.8% +5.1% $22.4B IN SALES +5.2% 32.3% GROSS MARGIN -60 basis points 9.6% ADJ. OPERATING MARGIN1 +88 basis points $2.28 ADJ. DILUTED EPS1 +28.1% PAINT ROUGH PLUMBING BUILDING MATERIALS -0.7% U.S. COMP SALES MILLWORK $1.58 DILUTED EPS -11.2% KITCHENS & BATH 7.6% OPERATING MARGIN -108 basis points APPLIANCES WE RETURNED $2.6 BILLION to our shareholders through dividends and share repurchases Financial Highlights Q4 2022 RESULTS Note: Q4 2022 includes a 14th week compared to Q4 2021, which had 13 weeks. Comparable sales are based on comparable 14-week periods. 1Adjusted Operating Margin and Adjusted Diluted EPS are non-GAAP financial measures. Refer to ir.lowes.com for a reconciliation of non-GAAP measures. 11 consecutive quarters of double-digit Pro growth +10% U.S. PRO GROWTH Exhibit 99.2

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![](exhibit992-02032023002.jpg)

U.S. Comparable Sales Summary All U.S. Product Categories Drove Three-Year Comps Above 20% 8 OF 14 CATEGORIES ABOVE COMPANY AVERAGE (vs. FY 2021) Product Category Performance All 15 Regions Delivered Double-Digit Positive Comps on a 3-Year Basis U.S. PRO GROWTH OF +16% 10% ONLINE PENETRATION Capitalized on Pro momentum by growing our MVPs Pro Rewards and Partnerships Program. Continued rollout of market delivery model for big and bulky products, supporting 1,000+ stores across 10 geographic regions. Announced a 5-year, $100M commitment to improving hometowns across the U.S. Elevated our private brand offering – including expanding STAINMASTER® into hard flooring and paint. Doubled since 2019™® FLOORING BUILDING MATERIIALS ROUGH PLUMBING HARDWARE MILLWORK PAINT KITCHENS & BATHELECTRICAL WE RETURNED $16.5 BILLION to our shareholders through dividends and share repurchases $97.1B IN SALES +0.8% 33.2% GROSS MARGIN -7 basis points 13.0% ADJ. OPERATING MARGIN1 +48 basis points $13.81 ADJ. DILUTED EPS1 +14.7% U.S. COMP SALES $10.17 DILUTED EPS -15.5% 10.5% OPERATING MARGIN -209 basis points Financial Highlights COMP TRANSACTIONS COMP $101.68 AVERAGE TICKET LOWES.COM SALES GROWTH -7.4% +7.0% +6.5% FY 2022 RESULTS -0.4% Note: FY 2022 includes a 53rd week compared to FY 2021, which had 52 weeks. Comparable sales are based on comparable 53-week periods. 1Adjusted Operating Margin and Adjusted Diluted EPS are non-GAAP financial measures. Refer to ir.lowes.com for a reconciliation of non-GAAP measures. 4 years in a row Total Home Strategy Updates

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![](exhibit992-02032023003.jpg)

Total Home Strategy Providing a full complement of products and services for Pros and Consumers alike, enabling a Total Home solution for every need in the home Market Share Acceleration Drive Pro penetration Accelerate online business Expand installation services Drive localization Elevate assortment

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![](exhibit992-02032023004.jpg)

Q4 and Fiscal 2022 Reconciliation of Non-GAAP Measures Management of Lowe's Companies, Inc. (the Company) uses certain non-GAAP financial measures to provide additional insight for analysts and investors in evaluating the Company's financial and operating performance. These non-GAAP financial measures should not be considered an alternative to, or more meaningful indicator of, the Company's financial measures as prepared in accordance with GAAP. The Company's methods of determining these non-GAAP financial measures may differ from the methods used by other companies and may not be comparable. The Company has provided the following non-GAAP financial measures for comparing its operating performance for the three months and fiscal year ended February 3, 2023: adjusted operating income, adjusted operating margin, and adjusted diluted earnings per share. These measures exclude the impacts of a certain discrete item, further described below, not contemplated in Lowe's Business Outlook to assist the user in understanding operational performance for the fourth quarter and fiscal 2022. Fiscal 2022 Impacts During fiscal 2022, the Company recognized financial impacts from the following discrete item, not contemplated in the Company's Business Outlook for fiscal 2022: • In the third quarter of fiscal 2022, the Company recognized a pre-tax $2.1 billion long-lived asset impairment of the Canadian retail business. In the fourth quarter of fiscal 2022, the Company recognized additional pre-tax costs totaling $441 million, consisting of the loss on the sale and closing costs associated with the sale of the Canadian retail business (Canadian retail business transaction costs). The following provides a reconciliation of the Company's non-GAAP financial measure to the most directly comparable GAAP financial measure: Three Months Ended Year Ended Adjusted Operating Income (in millions, except percentage data) February 3, 2023 February 3, 2023 Operating Income, As Reported $1,704 $10,159 Canadian retail business transaction costs 441 2,501 Adjusted Operating Income $2,145 $12,660 Operating Margin, As Reported 7.59 % 10.47 % Adjusted Operating Margin 9.55 % 13.04 % Three Months Ended Year Ended February 3, 2023 February 3, 2023 Adjusted Diluted Earnings Per Share Pre-Tax Earnings Tax 1 Net Earnings Pre-Tax Earnings Tax 1 Net Earnings Diluted Earnings Per Share, As Reported $1.58 $10.17 Canadian retail business transaction costs 0.73 (0.03) 0.70 3.95 (0.31) 3.64 Adjusted Diluted Earnings Per Share $2.28 $13.81 1. Represents the corresponding tax benefit or expense related to the item excluded from adjusted diluted earnings per share.

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![](exhibit992-02032023005.jpg)

Forward-Looking Statements This presentation includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believe", "expect", "anticipate", "plan", "desire", "project", "estimate", "intend", "will", "should", "could", "would", "may", "strategy", "potential", "opportunity", "outlook", "scenario", "guidance", and similar expressions are forward-looking statements. Forward-looking statements involve, among other things, expectations, projections, and assumptions about future financial and operating results, objectives, business outlook, priorities, sales growth, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for products and services, share repurchases, Lowe's strategic initiatives, including those relating to acquisitions and dispositions and the impact of such transactions on our strategic and operational plans and financial results. Such statements involve risks and uncertainties and we can give no assurance that they will prove to be correct. Actual results may differ materially from those expressed or implied in such statements. A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, changes in general economic conditions, such as volatility and/or lack of liquidity from time to time in U.S. and world financial markets and the consequent reduced availability and/or higher cost of borrowing to Lowe's and its customers, slower rates of growth in real disposable personal income that could affect the rate of growth in consumer spending, inflation and its impacts on discretionary spending and on our costs, shortages, and other disruptions in the labor supply, interest rate and currency fluctuations, home price appreciation or decreasing housing turnover, the availability of consumer credit and of mortgage financing, trade policy changes or additional tariffs, outbreaks of pandemics, fluctuations in fuel and energy costs, inflation or deflation of commodity prices, natural disasters, armed conflicts, acts of both domestic and international terrorism, and other factors that can negatively affect our customers. Investors and others should carefully consider the foregoing factors and other uncertainties, risks and potential events including, but not limited to, those described in "Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K and as may be updated from time to time in Item 1A in our quarterly reports on Form 10-Q or other subsequent filings with the SEC. All such forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update these statements other than as required by law.

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