Lowe’s Reports First Quarter Sales and Earnings Results

  Lowe’s Reports First Quarter Sales and Earnings Results

Business Wire

MOORESVILLE, N.C. -- May 22, 2013

Lowe’s Companies, Inc. (NYSE: LOW), the world’s second largest home
improvement retailer, today reported net earnings of $540 million for the
quarter ended May 3, 2013, a 2.5 percent increase over the same period a year
ago. Diluted earnings per share increased 14.0 percent to $0.49 from $0.43 in
the first quarter of 2012.

Sales for the quarter decreased 0.5 percent to $13.1 billion from $13.2
billion in the first quarter of 2012, while comparable sales for the quarter
decreased 0.7 percent.

“Results for indoor categories were solid for the quarter, a testament to the
team’s continued focus on improving our core business through cross-functional
collaboration and consistent execution in stores and across other selling
channels,” commented Robert A. Niblock, Lowe’s chairman, president and CEO.

“Cooler than normal temperatures and greater precipitation resulted in a
delayed spring selling season which impacted our results in exterior
categories,” Niblock added. “While overall performance in the month of March
was particularly soft, April improved significantly and we have maintained
that positive momentum through the first few weeks of May.”

Delivering on the commitment to return excess cash to shareholders, the
company repurchased $1.0 billion of stock and paid $178 million in dividends
in the first quarter of 2013.

As of May 3, 2013, Lowe’s operated 1,755 stores in the United States, Canada
and Mexico, representing 197.5 million square feet of retail selling space.

A conference call to discuss first quarter 2013 operating results is scheduled
for today (Wednesday, May 22) 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 First Quarter 2013 Earnings
Conference Call Webcast. Supplemental slides will be available fifteen minutes
prior to the start of the conference call. A replay of the call will be
archived on Lowes.com/investor until August 20, 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 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,
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 (Unaudited)
In Millions, Except Per Share and Percentage Data
                                  Three Months Ended
                                  May 3, 2013              May 4, 2012
Current Earnings             Amount   Percent    Amount    Percent
Net sales                       $ 13,088     100.00      $ 13,153      100.00
Cost of sales                     8,533      65.20         8,589       65.30
Gross margin                      4,555      34.80         4,564       34.70
Selling, general and              3,222      24.62         3,241       24.65
Depreciation                      352        2.69          370         2.81
Interest - net                    113        0.86          103         0.78
Total expenses                    3,687      28.17         3,714       28.24
Pre-tax earnings                  868        6.63          850         6.46
Income tax provision              328        2.50          323         2.45
Net earnings                    $ 540        4.13        $ 527         4.01
Weighted average common
shares outstanding -              1,088                    1,206
Basic earnings per              $ 0.49                   $ 0.43
common share ^(1)
Weighted average common
shares outstanding -              1,090                    1,208
Diluted earnings per            $ 0.49                   $ 0.43
common share ^(1)
Cash dividends per              $ 0.16                   $ 0.14
Retained Earnings                                       
Balance at beginning of         $ 13,224                 $ 15,852
Net earnings                      540                      527
Cash dividends                    (174)                    (165)
Share repurchases                 (972)                    (1,657)
Balance at end of               $ 12,618                 $ 14,557

^(1) 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 $537

million for the three months ended May 3, 2013 and $524 million for the three
months ended May 4, 2012.

Lowe's Companies, Inc.
Consolidated Statements of Comprehensive Income (Unaudited)
In Millions, Except Percentage Data
                                 Three Months Ended
                                     May 3,2013             May 4, 2012
                                     Amount   Percent   Amount   Percent
Net earnings                       $ 540        4.13      $ 527        4.01
Foreign currency translation         -          -           6          0.05
adjustments - net of tax
Net unrealized investment            -          -           -          -
gains - net of tax
Other comprehensive income           -          -           6          0.05
Comprehensive income               $ 540        4.13      $ 533        4.06

Lowe's Companies, Inc.
Consolidated Balance
In Millions, Except Par
Value Data
                                      (Unaudited)     (Unaudited)
                                      May 3, 2013     May 4, 2012     February
                                                                      1, 2013
Current assets:
Cash and cash                       $ 1,081         $ 3,072         $ 541
Short-term                            118             161             125
Merchandise                           10,274          9,786           8,600
inventory - net
Deferred income                       228             279             217
taxes - net
Other current assets                 313            330            301
Total current assets                  12,014          13,628          9,784
Property, less                        21,257          21,821          21,477
accumulated depreciation
Long-term                             272             710             271
Other assets                         1,188          1,049          1,134
Total assets                        $ 34,731        $ 37,208        $ 32,666
Liabilities and
shareholders' equity
Current liabilities:
Current maturities                  $ 47            $ 593           $ 47
of long-term debt
Accounts payable                      7,041           6,977           4,657
Accrued compensation and              467             492             670
employee benefits
Deferred revenue                      1,008           881             824
Other current                        1,876          2,053          1,510
Total current                         10,439          10,996          7,708
Long-term debt, excluding             9,026           9,018           9,030
current maturities
Deferred income                       440             412             455
taxes - net
Deferred revenue -                    717             716             715
extended protection plans
Other liabilities                    857            863            901
Total liabilities                    21,479         22,005         18,809
Preferred stock - $5 par              -               -               -
value, none issued
Common stock - $.50
par value;
Shares issued and
May 3, 2013               1,088
May 4, 2012               1,187
February 1, 2013          1,110       544             594             555
Capital in excess of                  38              -               26
par value
Retained earnings                     12,618          14,557          13,224
Accumulated other                    52             52             52
comprehensive income
Total shareholders'                  13,252         15,203         13,857
Total liabilities and               $ 34,731        $ 37,208        $ 32,666
shareholders' equity

Consolidated Statements of Cash Flows
In Millions
                                                 Three Months Ended
                                                 May 3, 2013    May 4, 2012
Cash flows from operating activities:
Net earnings                                     $  540            $  527
Adjustments to reconcile net earnings to
net cash provided by
operating activities:
Depreciation and amortization                       376               396
Deferred income taxes                               (26    )          (230   )
Loss on property and other assets - net             5                 19
Loss on equity method investments                   15                15
Share-based payment expense                         18                25
Net changes in operating assets and
Merchandise inventory - net                         (1,674 )          (1,432 )
Other operating assets                              (5     )          (65    )
Accounts payable                                    2,381             2,625
Other operating liabilities                         362               587
Net cash provided by operating activities           1,992             2,467
Cash flows from investing activities:
Purchases of investments                            (84    )          (708   )
Proceeds from sale/maturity of investments          89                627
Capital expenditures                                (196   )          (337   )
Contributions to equity method investments          (73    )          (70    )
- net
Proceeds from sale of property and other            6                 29
long-term assets
Other - net                                         (5     )          (11    )
Net cash used in investing activities               (263   )          (470   )
Cash flows from financing activities:
Net proceeds from issuance of long-term             -                 1,984
Repayment of long-term debt                         (11    )          (10    )
Proceeds from issuance of common stock
under                                               40                53

 share-based payment plans
Cash dividend payments                              (178   )          (174   )
Repurchase of common stock                          (1,046 )          (1,789 )
Other - net                                         5                 (4     )
Net cash (used in) provided by financing            (1,190 )          60
Effect of exchange rate changes on cash             1                 1
Net increase in cash and cash equivalents           540               2,058
Cash and cash equivalents, beginning of             541               1,014
Cash and cash equivalents, end of period         $  1,081          $  3,072


Shareholders’/Analysts’ Inquiries:
Tiffany Mason, 704-758-2033
Media Inquiries:
Chris Ahearn, 704-758-2304
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