Lowe’s Reports Fourth Quarter Sales and Earnings Results

  Lowe’s Reports Fourth Quarter Sales and Earnings Results

      -- Fourth Quarter Comparable Store Sales Increased 1.9 Percent --

             -- Announces $5 Billion Share Repurchase Program --

Business Wire

MOORESVILLE, N.C. -- February 25, 2013

Lowe’s Companies, Inc. (NYSE: LOW), the world’s second largest home
improvement retailer, today reported net earnings of $288 million and diluted
earnings per share of $0.26 for the fourth quarter of 2012. For the fiscal
year, net earnings were $2.0 billion and diluted earnings per share were
$1.69. Lowe’s fiscal year ends on the Friday nearest the end of January;
therefore, fourth quarter and fiscal year 2011 included an extra week compared
to 2012. As a result of the extra week in 2011, net earnings for the fourth
quarter declined 10.6 percent and diluted earnings per share were flat from
the fourth quarter of 2011. Net earnings for the fiscal year increased 6.5
percent and diluted earnings per share increased 18.2 percent from fiscal year
2011.

Sales for the fourth quarter decreased 5.0 percent to $11.0 billion from $11.6
billion in the fourth quarter of 2011. For the fiscal year, sales were $50.5
billion, a 0.6% increase over fiscal year 2011.

The 53^rd week contributed $766 million to sales and approximately $0.05 to
diluted earnings per share in fourth quarter and fiscal year 2011. The
quarterly comparisons in 2012 were also impacted by a week shift which
negatively impacted sales by $119 million and diluted earnings per share by
approximately $0.02 in the fourth quarter of 2012. For the fiscal year, the
week shift had an insignificant impact on sales and diluted earnings per
share.

Comparable store sales for the fourth quarter of 2012 increased 1.9 percent on
a consolidated basis as well as for the U.S. business. For the fiscal year,
comparable store sales increased 1.4 percent, while comparable store sales for
the U.S. business increased 1.5 percent. Comparable store sales are based on
comparable 13-week and 52-week periods, respectively.

“We delivered solid results in the fourth quarter,” commented Robert A.
Niblock, Lowe’s chairman, president and CEO. “Our results are a testament to
the team’s success in driving more balanced performance across the quarter,
our response to the demand created by recovery efforts in the wake of
superstorm Sandy, and the momentum we’re creating with our initiatives.

“I’d like to thank our employees for their perseverance in a year of
significant change, and for their continued dedication to serving customers,”
Niblock added.

Delivering on the commitment to return excess cash to shareholders, the
company repurchased $750 million or 21.3 million shares of stock and paid $180
million in dividends in the fourth quarter of 2012. For the fiscal year, the
company repurchased $4.35 billion or 146 million shares of common stock and
paid $704 million in dividends.

To further deliver on this commitment, the Board of Directors has authorized
the repurchase of up to $5 billion of the company’s common stock. The
remaining prior authorization was simultaneously terminated. Although this new
repurchase authorization has no expiration date, the company expects to use
the full amount over the next two years. The repurchases will be subject to
market conditions and will be made from time to time either in the open market
or through off market private transactions in accordance with the requirements
of the Securities and Exchange Commission. The company’s repurchase program
may be suspended, discontinued or resumed at any time.

As of February 1, 2013, Lowe’s operated 1,754 stores in the United States,
Canada and Mexico representing 197.4 million square feet of retail selling
space.

A conference call to discuss fourth quarter 2012 operating results is
scheduled for today (Monday, February 25) at 9:00 am ET. The conference call
will be available through a webcast and can be accessed by visiting Lowe’s
website at www.Lowes.com/investor and clicking on Lowe’s Fourth Quarter 2012
Earnings Conference Call Webcast. A replay of the call will be archived on
Lowes.com/investor until May 21, 2013.

Lowe’s Business Outlook

Fiscal Year 2013 (comparisons to fiscal year 2012; based on U.S. GAAP unless
otherwise noted)

  *Total sales are expected increase approximately 4 percent.
  *Comparable store sales are expected to increase approximately 3.5 percent.
  *The company expects to open approximately 10 stores in fiscal year 2013.
  *Earnings before interest and taxes as a percentage of sales (operating
    margin) are expected to increase approximately 60 basis points.
  *The effective income tax rate is expected to be approximately 38.1%.
  *Diluted earnings per share of approximately $2.05 are expected for the
    fiscal year ending January 31, 2014.

Disclosure Regarding Forward-Looking Statements

This news release includes "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements
of the company's expectations for sales growth, comparable store sales,
earnings and performance, shareholder value, capital expenditures, cash flows,
store openings, the housing market, the home improvement industry, demand for
services, share repurchases, the Company’s strategic initiatives and any
statement of an assumption underlying any of the foregoing, constitute
"forward-looking statements" under the Act. Although we believe that the
expectations, opinions, projections, and comments reflected in these
forward-looking statements are reasonable, we can give no assurance that such
statements will prove to be correct. A wide variety of potential risks,
uncertainties, and other factors could materially affect our ability to
achieve the results either expressed or implied by our forward-looking
statements including, but not limited to, changes in general economic
conditions, such as continued high rates of unemployment, interest rate and
currency fluctuations, higher fuel and other energy costs, slower growth in
personal income, changes in consumer spending, changes in the rate of housing
turnover, the availability and increasing regulation of consumer credit and of
mortgage financing, inflation or deflation of commodity prices, and other
factors which can negatively affect our customers, as well as our ability to:
(i) respond to adverse trends in the housing industry, such as the
psychological effects of lower home prices, and in the level of repairs,
remodeling, and additions to existing homes, as well as a general reduction in
commercial building activity; (ii) secure, develop, and otherwise implement
new technologies and processes designed to enhance our efficiency and
competitiveness; (iii) attract, train, and retain highly-qualified associates;
(iv) manage our business effectively as we adapt our traditional operating
model to meet the changing expectations of our customers; (v) to maintain,
improve, upgrade and protect our critical information systems; (vi) respond to
fluctuations in the prices and availability of services, supplies, and
products; (vii) respond to the growth and impact of competition; (viii)
address changes in existing or new laws or regulations that affect consumer
credit, employment/labor, trade, product safety, transportation/logistics,
energy costs, health care, tax or environmental issues; and (ix) respond to
unanticipated weather conditions that could adversely affect sales. In
addition, we could experience additional impairment losses if the actual
results of our operating stores are not consistent with the assumptions and
judgments we have made in estimating future cash flows and determining asset
fair values. For more information about these and other risks and
uncertainties that we are exposed to, you should read the "Risk Factors" and
"Critical Accounting Policies and Estimates" included in our Annual Report on
Form 10-K to the United States Securities and Exchange Commission (the “SEC”)
and the description of material changes therein or updated version thereof, if
any, included in our Quarterly Reports on Form 10-Q.

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 2012 sales of $50.5 billion, Lowe’s Companies, Inc. is a
FORTUNE^® 100 company that serves approximately 15 million customers a week at
more than 1,750 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
In Millions, Except Per Share and
Percentage Data
                
                     Three Months Ended ^(1)                           Year Ended ^ (1)
                     (Unaudited)            (Unaudited)                (Unaudited)
                     February 1, 2013       February 3, 2012           February 1, 2013       February 3, 2012
Current           Amount   Percent    Amount   Percent      Amount   Percent    Amount   Percent
Earnings
Net sales          $ 11,046   100.00      $ 11,629   100.00          $ 50,521   100.00      $ 50,208   100.00
                                                                                                       
Cost of sales        7,261    65.73         7,650    65.78             33,194   65.70         32,858   65.44
                                                                                                       
Gross margin         3,785    34.27         3,979    34.22             17,327   34.30         17,350   34.56
                                                                                                       
Expenses:
                                                                                                       
Selling,
general and          2,809    25.43         3,009    25.88             12,244   24.24         12,593   25.08
administrative
                                                                                                       
Depreciation         412      3.73          383      3.29              1,523    3.01          1,480    2.95
                                                                                                       
Interest - net       109      0.99          102      0.88              423      0.84          371      0.74
                                                                                                       
Total expenses       3,330    30.15         3,494    30.05             14,190   28.09         14,444   28.77
                                                                                                       
Pre-tax              455      4.12          485      4.17              3,137    6.21          2,906    5.79
earnings
                                                                                                       
Income tax           167      1.51          163      1.40              1,178    2.33          1,067    2.13
provision
                                                                                                       
Net earnings       $ 288      2.61        $ 322      2.77            $ 1,959    3.88        $ 1,839    3.66
                                                                                 
                                                                                                       
Weighted
average common
shares               1,109                  1,239                      1,150                  1,271
outstanding -
basic
                                                                                                       
Basic earnings
per common         $ 0.26                 $ 0.26                     $ 1.69                 $ 1.43
share ^(2)
                                                                                                       
Weighted
average common
shares               1,112                  1,241                      1,152                  1,273
outstanding -
diluted
                                                                                                       
Diluted
earnings per       $ 0.26                 $ 0.26                     $ 1.69                 $ 1.43
common share
^(2)
                                                                                                       
Cash dividends     $ 0.16                 $ 0.14                     $ 0.62                 $ 0.53
per share
                                                                                 
                                                                                                       
Retained                                                                          
Earnings
Balance at
beginning of       $ 13,602               $ 16,109                   $ 15,852               $ 17,371
period
Net earnings         288                    322                        1,959                  1,839
Cash dividends       (178   )               (174   )                   (708   )               (672   )
Share                (488   )               (405   )                   (3,879 )               (2,686 )
repurchases
Balance at end     $ 13,224               $ 15,852                   $ 13,224               $ 15,852
of period
                                                                                                       

^(1) The fiscal year and three months ended February 3, 2012, had 53 weeks and
14 weeks, respectively. The fiscal year and three months ended February 1,
2013, had 52 weeks and 13 weeks, respectively.

^(2) 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 $286 million for the three months ended February 1, 2013 and $320 million
for the three months ended February 3, 2012. Net earnings allocable to common
shares used in the basic and diluted earnings per share calculation were
$1,945 million for the fiscal year ended February 1, 2013 and $1,824 million
for the fiscal year ended February 3, 2012.


Lowe's Companies,                                                           
Inc.
Consolidated
Statements of
Comprehensive Income
In Millions, Except
Percentage Data
                
                 Three Months Ended ^(1)                   Year Ended ^ (1)
                     (Unaudited)            (Unaudited)        (Unaudited)
                     February 1,            February 3,        February 1,            February 3,
                     2013                   2012               2013                   2012
                     Amount Percent     Amount Percent     Amount Percent     Amount  Percent
Net earnings       $ 288    2.61          $ 322    2.77      $ 1,959  3.88          $ 1,839   3.66
                                                                                              
Foreign
currency             -      -               (1   ) -           6      0.01            (8    ) (0.02 )
translation
adjustments
                                                                                              
Net unrealized
investment           -      -               -      -           -      -               1       -
(losses)/gains
                                                                                              
Other
comprehensive        -      -               (1   ) -           6      0.01            (7    ) (0.02 )
(loss)/income
                                                                                              
Comprehensive    $ 288    2.61       $ 321   2.77     $ 1,965  3.89       $ 1,832  3.64  
income

^(1) The fiscal year and three months ended February 3, 2012, had 53 weeks and
14 weeks, respectively. The fiscal year and three months ended February 1,
2013, had 52 weeks and 13 weeks, respectively.


                                                          
Lowe's Companies, Inc.
Consolidated Balance Sheets
In Millions, Except Par Value
Data
                                                        
                                         (Unaudited)
                                         February 1, 2013     February 3, 2012
Assets
                                                              
Current assets:
Cash and cash equivalents              $ 541                $ 1,014
Short-term investments                   125                  286
Merchandise inventory - net              8,600                8,355
Deferred income taxes - net              217                  183
Other current assets                    301                 234
                                                              
Total current assets                     9,784                10,072
                                                              
Property, less accumulated               21,477               21,970
depreciation
Long-term investments                    271                  504
Other assets                            1,134               1,013
                                                              
Total assets                           $ 32,666             $ 33,559
                                                              
Liabilities and Shareholders'
Equity
                                                              
Current liabilities:
Current maturities of long-term        $ 47                 $ 592
debt
Accounts payable                         4,657                4,352
Accrued compensation and employee        670                  613
benefits
Deferred revenue                         824                  801
Other current liabilities               1,510               1,533
                                                              
Total current liabilities                7,708                7,891
                                                              
Long-term debt, excluding current        9,030                7,035
maturities
Deferred income taxes - net              455                  531
Deferred revenue - extended protection   715                  704
plans
Other liabilities                       901                 865
                                                              
Total liabilities                       18,809              17,026
                                                              
Shareholders' equity:
Preferred stock - $5 par value,          -                    -
none issued
Common stock - $.50 par value;
Shares issued and outstanding
February 1, 2013                 1,110
February 3, 2012                 1,241   555                  621
Capital in excess of par value           26                   14
Retained earnings                        13,224               15,852
Accumulated other comprehensive         52                  46
income
                                                              
Total shareholders' equity              13,857              16,533
                                                              
Total liabilities and shareholders'    $ 32,666             $ 33,559
equity
                                                              

                                                           
Lowe's Companies, Inc.
Consolidated Statements of Cash Flows
In Millions
                                                          
                                           Year Ended
                                           (Unaudited)
                                           February 1, 2013  February 3, 2012
Cash flows from operating activities:
Net earnings                               $    1,959         $   1,839
Adjustments to reconcile net earnings to
net cash provided by
operating activities:
Depreciation and amortization                   1,623             1,579
Deferred income taxes                           (140     )        54
Loss on property and other assets - net         83                456
Loss on equity method investments               48                12
Share-based payment expense                     100               107
Net changes in operating assets and
liabilities:
Merchandise inventory - net                     (244     )        (33      )
Other operating assets                          (87      )        125
Accounts payable                                303               (5       )
Other operating liabilities                     117               215
Net cash provided by operating                  3,762             4,349
activities
                                                              
Cash flows from investing activities:
Purchases of investments                        (1,444   )        (1,433   )
Proceeds from sale/maturity of                  1,837             2,120
investments
Capital expenditures                            (1,211   )        (1,829   )
Change in equity method investments             (219     )        (232     )
Proceeds from sale of property and other        130               52
long-term assets
Other - net                                     4                 (115     )
Net cash used in investing activities           (903     )        (1,437   )
                                                              
Cash flows from financing activities:
Net proceeds from issuance of long-term         1,984             993
debt
Repayment of long-term debt                     (591     )        (37      )
Proceeds from issuance of common stock
under                                           349               100
 share-based payment plans
Cash dividend payments                          (704     )        (647     )
Repurchase of common stock                      (4,393   )        (2,937   )
Other - net                                     22                (21      )
Net cash used in financing activities           (3,333   )        (2,549   )
                                                              
Effect of exchange rate changes on cash         1                 (1       )
                                                              
Net (decrease)/increase in cash and cash        (473     )        362
equivalents
Cash and cash equivalents, beginning of         1,014             652
year
Cash and cash equivalents, end of year     $    541           $   1,014

Contact:

Lowe’s Companies, Inc.
Shareholders’/Analysts’ Inquiries:
Tiffany Mason, 704-758-2033
tiffany.l.mason@lowes.com
or
Media Inquiries:
Chris Ahearn, 704-758-2304
chris.c.ahearn@lowes.com