Lowe's Companies, Inc. · NYSE:LOW
Lowe's Companies — Investor Day (December 2024)
125 slides from Lowe's Companies's investor day presentation, Dec 11, 2024
Slide 1: 2024 Analyst & Investor Conference
2024 Analyst & Investor Conference Wednesday, December 11th, 2024 D E C E M B E R 11 , 2 0 2 4
Slide 2: Kate Pearlman
Kate Pearlman V I C E P R E S I D E N T, I N V E S T O R R E L A T I O N S & T R E A S U R E R
Slide 3: Agenda
Agenda Marvin Ellison Seemantini Bill Boltz Jen Wilson Quonta Vance BREAK CEO Perspectives Godbole Merchandising Marketing Pro Technology Joe McFarland Margi Vagell Janice Dupré Brandon Sink BREAK Q&A LUNCH Home Services Supply Chain Human Resources Financial Update & Store Operations
Slide 4: Forward-looking statements
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”, “c
Slide 5: Non-GAAP disclosure
Non-GAAP disclosure 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 alterna
Slide 6: Marvin R. Ellison
Marvin R. Ellison CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Slide 7: Strong results delivered: 2018-24E
Strong results delivered: 2018-24E +26 % +380 bps +132 % +600 bps 6-year Adjusted 6-year Adjusted Customer service U.S. Sales growth 1 Operating Margin 1,2 EPS growth 1,2 scores 3 +222 Total stock return % 4 1.6x Higher than S&P 500 $ 57B Capital return 2.8x Increase in ROIC 6 total stock return 4 t
Slide 8: Accomplished leadership team
Accomplished leadership team 30+ YEARS 15+ YEARS 25+ YEARS 25+ YEARS experience experience experience experience Bill Boltz Janice Dupré Seemantini Godbole Joe McFarland EVP, Chief Digital & EVP, Merchandising EVP, Human Resources EVP, Stores Information Officer 30+ YEARS 20+ YEARS 20+ 25+ YEARS YEA
Slide 9: Culture of continuous improvement
Culture of continuous improvement L A U N C H E D P E R P E T U A L P R O D U C T I V I T Y I M P R O V E M E N T ( P P I ) A C R O S S T H E C O M PA N Y Perpetual Productivity Improvement
Slide 10: Home improvement market
Home improvement market A M P L E O P P O RT U N I T Y TO E X PA N D M A R K E T S H A R E 50 % 50 % ~ 30% PR O D IY/D IFM PR O ~$ 1.0 T Large & highly fragmented market Home improvement Lowe’s sales market penetration U.S. HOME IMPROVEMENT (HI) T O TA L A D D R E S S A B L E M A R K E T ~ 70% D IY/
Slide 11: Home improvement market outlook
Home improvement market outlook M O R E D I F F I C U LT B A C K D R O P T H A N A N T I C I PAT E D Primary drivers remain strong Temporary headwinds Home price appreciation COVID pull forward of HI spending Disposable personal income Inflation & higher interest rates Aging housing stock Prioritizi
Slide 12: Home improvement market recovery
Home improvement market recovery S U P P O RT E D B Y C Y C L I C A L A N D S T R U C T U R A L D E M A N D D R I V E R S C Y C L I C A L FA C TO R S DEMOGRAPHIC TRENDS Lower interest & Millennial household mortgage rates formation Improving consumer Baby Boomers confidence aging in place Normalizat
Slide 13: Phased recovery expected
Phased recovery expected Equity extraction, Lower interest & Improving consumer tapping record $35T mortgage rates confidence homeowner equity Homeowners re-engage …then engage first in simpler refresh in more complex and repair projects... remodel projects 2025 AND BEYOND
Slide 14: DIY and Pro customer overview
DIY and Pro customer overview O U R TA R G E T C U S TO M E R S DIY/DIFM SMALL-TO-MEDIUM PRO Millennial homeowners Repair & Property Baby Boomers Tradespeople with kids remodelers managers
Slide 15: We Help. You Save.
We Help. You Save. L O W E ’ S D I S T I N C T VA L U E C O M M I T M E N T T H AT S E T S U S A PA RT Delivering the most helpful experiences to save our customers time and money
Slide 16: Total Home Strategy 2025
Total Home Strategy 2025 CAPTURING MARKET SHARE ACROSS DIY AND PRO Drive Accelerate Expand Create a Increase Pro penetration online sales home services loyalty space ecosystem productivity Helping to solve problems and fulfill dreams for the home
Slide 17: More productivity still ahead
More productivity still ahead O N LY I N T H E M I D D L E I N N I N G S O F O U R P P I J O U R N E Y Perpetual Productivity Improvement Leveraging new AI-enabled solutions in our ongoing PPI roadmap, across the company
Slide 18: Key investment highlights
Key investment highlights Favorable long-term industry Well-capitalized and investing trends & resilient business model in omnichannel capabilities Well-positioned to capture Significant productivity share across DIY and Pro expansion opportunity Responsible corporate citizen Disciplined capital all
Slide 19: Technology
Technology S E E M A N T I N I G O D B O L E , C H I E F D I G I TA L & I N F O R M AT I O N O F F I C E R
Slide 20: Total Home Strategy 2025
Total Home Strategy 2025 CAPTURING MARKET SHARE ACROSS DIY AND PRO Drive Accelerate Expand Create a Increase Pro penetration online sales home services loyalty space ecosystem productivity Helping to solve problems and fulfill dreams for the home
Slide 21: Tech transformation, 2018-24
Tech transformation, 2018-24 M O D E R N I Z E D T E C H P L AT F O R M S TO C R E AT E I N T E G R AT E D O M N I C H A N N E L S H O P P I N G E X P E R I E N C E Bulk Stores Lowes.com Stores Distribution Centers Regional Mobile App Distribution Centers Contact Import Center Distribution Flatbed C
Slide 22: New omnichannel network
New omnichannel network Omnichannel Network Single source for items, prices, promotions, inventory, sourcing, delivery, customers and orders Supporting consistent customer experience across all channels IN STORE ONLINE OTHER Mobile Associate Contact smart Lowes.com Lowe’s app Jobsite terminals cente
Slide 23: New AI framework
New AI framework ENHANCING HOW WE SELL … HOW WE SHOP … AND HOW WE WORK Sell Shop Work
Slide 24: Total Home Strategy 2025
Total Home Strategy 2025 CAPTURING MARKET SHARE ACROSS DIY AND PRO Drive Accelerate Expand Create a Increase Pro penetration online sales home services loyalty space ecosystem productivity Helping to solve problems and fulfill dreams for the home
Slide 25: Style Your Space
Style Your Space A I D E S I G N A S S I S TA N T Personalized design recommendations Variety of style options Shoppable directly in the app
Slide 26: Lowe's Creator storefronts
Lowe’s Creator storefronts S O U R C I N G D E S I G N I N S P I R AT I O N F R O M S O C I A L M E D I A I N F L U E N C E R S
Slide 27: DIY project know-how available online
DIY project know-how available online 1 , 0 0 0 + H O W- TO V I D E O S A I M E D AT H E L P I N G D I Y … F R O M B E G I N N E R TO A D VA N C E D
Slide 28: Lowe's new online marketplace
Lowe’s new online marketplace L A U N C H I N G T H E F I R S T P R O D U C T M A R K E T P L A C E I N T H E U . S . H O M E I M P R O V E M E N T I N D U S T RY
Slide 29: Enhanced omniselling capabilities
Enhanced omniselling capabilities W I D E R A S S O RT M E N T AVA I L A B L E O N L I N E A N D O N L O W E ’ S M A R K E T P L A C E
Slide 30: Guided selling
Guided selling H E L P I N G C U S TO M E R S WA L K T H R O U G H T H E S T E P S O F A C O M P L E X P U R C H A S E
Slide 31: Technology recap
Technology recap Tech at center New AI Launching Grow of Total Home framework a marketplace online sales Strategy 2025
Slide 32: Merchandising
Merchandising B I L L B O L T Z , E X E C U T I V E V I C E P R E S I D E N T, M E R C H A N D I S I N G
Slide 33: Merchandising key wins, 2023-24
Merchandising key wins, 2023-24 Enhanced our brand portfolio Introduced new and innovative products Rural assortment expanded to over 300 stores Expanded merchandising services team (MST) & MST responsibilities
Slide 34: Total Home Strategy 2025
Total Home Strategy 2025 CAPTURING MARKET SHARE ACROSS DIY AND PRO Drive Accelerate Expand Create a Increase Pro penetration online sales home services loyalty space ecosystem productivity Helping to solve problems and fulfill dreams for the home
Slide 35: Balanced brand strategy
Balanced brand strategy W I T H W E L L - K N O W N N AT I O N A L B R A N D S W I T H L O N G S TA N D I N G L O YA L P R O A N D D I Y C U S TO M E R S …
Slide 36: Balanced brand strategy
Balanced brand strategy … . A N D P R I VAT E B R A N D S T H AT D R I V E D I F F E R E N T I AT I O N , L O YA LT Y A N D P R O F I TA B I L I T Y
Slide 37: Building out our Pro brand arsenal
Building out our Pro brand arsenal E X PA N D I N G P R O B R A N D P O RT F O L I O TO B E T T E R S E RV E T R A D E S P R O F E S S I O N A L S Added since 2022
Slide 38: Adding to our leading DIY assortment
Adding to our leading DIY assortment W I D E S T S E L E C T I O N O F A P P L I A N C E S A N D U N PA R A L L E L E D O P E A S S O RT M E N T Appliances Outdoor Power Equipment (OPE) Additional Power Brands
Slide 39: Driving private brand penetration
Driving private brand penetration WITH SIX $1 BILLION BRANDS … AND LAUNCHING LOWE’S ESSENTIALS $1B+ Brands NEW
Slide 40: Localization drives space productivity
Localization drives space productivity M A K I N G E V E RY L O W E ’ S F E E L L I K E A H O M E TO W N S TO R E Tailoring assortments at a store level based on… Climate Demographics, including Geography income & generational differences Home types & sizes Lifestyle trends Regulations & & preferenc
Slide 41: Leaning into our rural footprint
Leaning into our rural footprint F I N A L I Z I N G R O L L O U T O F R U R A L A S S O RT M E N T TO 1 5 0 A D D I T I O N A L S TO R E S Added convenience Expanded Introduced new items like pet food Garden Center UTV offering for & livestock feed assortment outdoor lifestyle
Slide 42: Driving inventory productivity
Driving inventory productivity S H I F T I N G F O C U S TO H I G H E R V E L O C I T Y S K U s
Slide 43: Expanding categories nationally
Expanding categories nationally TA K I N G O U R C AT E G O RY A C C E L E R ATO R S A C R O S S O U R S TO R E S TO D R I V E S PA C E P R O D U C T I V I T Y Workwear showroom Pet and automotive categories
Slide 44: Merchandising PPI
Merchandising PPI Product cost management Increase private brand penetration Inventory productivity Perpetual Productivity Improvement Pricing and promotional strategies Expand Lowe’s Media Network
Slide 45: Merchandising recap
Merchandising recap Delivering value Exciting & Improving space Driving profitability for DIY & Pro innovative productivity through PPI assortments
Slide 46: Marketing
Marketing J E N W I L S O N , S E N I O R V I C E P R E S I D E N T, C H I E F M A R K E T I N G O F F I C E R
Slide 47: Total Home Strategy 2025
Total Home Strategy 2025 CAPTURING MARKET SHARE ACROSS DIY AND PRO Drive Accelerate Expand Create a Increase Pro penetration online sales home services loyalty space ecosystem productivity Helping to solve problems and fulfill dreams for the home
Slide 48: My Lowe's Rewards
My Lowe’s Rewards M O R E VA L U E A N D M O R E R E A S O N S TO S H O P L O W E ’ S Loyalty designed for DIY Another level of rewards Earn rewards and enjoy with MLR Credit Card member-only perks 5% off every day on eligible purchases
Slide 49: My Lowe's Pro Rewards
My Lowe’s Pro Rewards R E L A U N C H I N G W I T H A S I M P L I F I E D P R O G R A M TO A C C E L E R AT E A D O P T I O N Designed for the small-to-medium Pro Single currency & intuitive Easier and faster for Pros to customer experience earn rewards and redeem them
Slide 50: Member-only deals
Member-only deals SPECIAL PRICING AND KEY SELLING EVENTS
Slide 51: High-performing data platform
High-performing data platform L E V E R A G I N G I N S I G H T S F R O M O U R L O YA LT Y P R O G R A M S & C U S TO M E R S H O P P I N G PAT T E R N S Creating better connections with our DIY and Pro customers through a more relevant and tailored experience … anticipating what they need next.
Slide 52: Digital Home Platform
Digital Home Platform H E L P I N G M Y L O W E S R E WA R D S M E M B E R S M A N A G E R O U T I N E M A I N T E N A N C E A N D WA R R A N T I E S Customers often misplace So we’re automatically adding … and providing them warranties and product information this information to their profile … wit
Slide 53: Reaching a broader customer base
Reaching a broader customer base TA R G E T E D C A M PA I G N S A C R O S S T H E S P O RT I N G W O R L D Official home improvement Lionel Messi and Copa America retailer of the NFL
Slide 54: Connecting our suppliers with a captive audience
Connecting our suppliers with a captive audience Now leveraging consumer insights from My Lowe’s Rewards Reaching customers throughout Advertising solutions that deliver growth. shopping journey on Lowes.com, social media and other sites
Slide 55: Accelerating growth
Accelerating growth W I T H A M U LT I - P R O N G E D A P P R O A C H TO G R O W L O W E ’ S M E D I A N E T W O R K Talented internal Measurable and Leveraging insights Return on Ad Spend team with expertise about consumer +50 actionable results in retail media and retail for our suppliers shoppin
Slide 56: Marketing recap
Marketing recap New DIY Relaunching Pro Customer data Differentiated home loyalty program loyalty program platform powering improvement media insights, marketing solutions & sales
Slide 57: Pro
Pro Q U O N T A V A N C E , E X E C U T I V E V I C E P R E S I D E N T, P R O & H O M E S E R V I C E S
Slide 58: Pro penetration of ~30%
Pro penetration of ~30% UP FROM 19% IN 2019… AND ~25% IN 2022 Overhauled Pro product and service offering Job lot quantities Dedicated service Launched Pro loyalty program U.S. stores reset
Slide 59: Recent Pro wins, 2023-24
Recent Pro wins, 2023-24 EHANCED PRO INVESTED IN ADDED MORE ESSENTIAL DIGITAL OFFERING PRO NEVER OUT SKUs PRO BRANDS +High Single Digit +200bps1 2-year Pro growth Pro customer service scores 1Customer service scores measured from Q3 2022 – Q3 2024
Slide 60: Klein tools returned to Lowe's
Klein tools returned to Lowe’s C O N T I N U I N G TO I M P R O V E P E R F O R M A N C E O F I T S C L A S S I C TO O L S F O R E L E C T R I C I A N S & H VA C Klein MODBox Klein KNECT +150 New products since we rekindled partnership
Slide 61: Total Home Strategy 2025
Total Home Strategy 2025 CAPTURING MARKET SHARE ACROSS DIY AND PRO Drive Accelerate Expand Create a Increase Pro penetration online sales home services loyalty space ecosystem productivity Helping to solve problems and fulfill dreams for the home
Slide 62: Enhance Pro CRM
Enhance Pro CRM L E V E R A G I N G I N S I G H T S F R O M M Y L O W E ' S P R O R E WA R D S Enabling our inside and outside salesforce to acquire, grow and manage Pro accounts
Slide 63: Increase share of planned spend
Increase share of planned spend E N H A N C I N G C A PA B I L I T I E S TO G R O W M A R K E T S H A R E Pro extended aisle Lowe’s Pro fulfillment capabilities
Slide 64: Pro extended aisle
Pro extended aisle E X PA N D E D C ATA L O G F O R S P E C I A L O R D E R S , W I T H S U P P L I E R D E L I V E RY D I R E C T TO J O B S I T E PRESENT FUTURE Current New Pro manual process extended aisle Associate easily builds Pro receives quote Supplier delivers a competitive quote within min
Slide 65: Enhancing Pro fulfillment capabilities
Enhancing Pro fulfillment capabilities H Y B R I D A P P R O A C H TA I L O R E D TO L O C A L M A R K E T Big & Bulky 0 0 Flatbed Fulfillment Market Delivery Center (FFC) 0 0 Pro Extended Aisle Store Fulfillment Pro Jobsite Delivery Fully Integrated 0 0 Gig Network Lowe’s Pro Supply
Slide 66: Leveraging Lowe's Pro Supply
Leveraging Lowe’s Pro Supply S E A M L E S S A C C E S S F O R S TO R E S TO S E L L F R O M L P S C ATA L O G Enabling larger order delivery by making LPS inventory easily accessible for Pro orders
Slide 67: Pro recap
Pro recap Destination for Relaunching Pro Opening a new Pro Expanding Pro convenience loyalty program extended aisle Pro fulfillment and planned capabilities purchases
Slide 68: Home Services & Store Operations
Home Services & Store Operations J O E M C F A R L A N D , E X E C U T I V E V I C E P R E S I D E N T, S T O R E S
Slide 69: Total Home Strategy 2025
Total Home Strategy 2025 CAPTURING MARKET SHARE ACROSS DIY AND PRO Drive Accelerate Expand Create a Increase Pro penetration online sales home services loyalty space ecosystem productivity Helping to solve problems and fulfill dreams for the home
Slide 70: Improved store shopping environment
Improved store shopping environment C A P I TA L I N T E N S I V E I N V E S T M E N T S T H AT H E L P U S O P T I M I Z E O U R L A R G E R S TO R E F O O T P R I N T
Slide 71: Easy installs through central selling
Easy installs through central selling G R E AT S O L U T I O N S F O R B O T H S I M P L E I N S TA L L S A N D L A R G E R P R O J E C T S Red vest associates focused Central selling team builds on serving customers in store quotes and provides customers and generating leads personalized support to
Slide 72: Tender anywhere
Tender anywhere A FA S T, I N T U I T I V E D I G I TA L PAY M E N T S O L U T I O N F O R I N S TA L L AT I O N P R O J E C T S Ready to Purchase Purchase Quote Online Quote Purchased Red vest associates focused on serving customers Customer receives a notification when a quote is ready for review
Slide 73: Enabling sales in customer homes
Enabling sales in customer homes B O L S T E R I N G T H E S A L E S T E A M O U T S I D E T H E S TO R E Our In-Home Consultants now use a single, intuitive system to assist customers in home with their installation quotes…simplifying the process
Slide 74: Vendor sells, furnishes & installs
Vendor sells, furnishes & installs T H I R D - PA RT Y M O D E L F O R M O R E C O M P L E X I N S TA L L S L I K E B AT H , WAT E R H E AT E R S , & H VA C
Slide 75: Store Operations
Store Operations
Slide 76: Store Ops transformation, 2018-24
Store Ops transformation, 2018-24 Mobile smart devices to empower associates Industry-leading labor scheduling system Enhanced store operating systems Meaningful gains in labor productivity and operating margin
Slide 77: Hardworking frontline team
Hardworking frontline team O U R K N O W L E D G A B L E , F R I E N D LY A S S O C I AT E S E M B O D Y “ W E H E L P. Y O U S AV E . ” +200 bps Customer service scores1 1Customer service scores measured from Q3 2022 – Q3 2024
Slide 78: Front-end transformation underway
Front-end transformation underway B E S T- I N - C L A S S S H O P P I N G E X P E R I E N C E Assisted self-checkout and Expanded BOPIS staging area expanded selling space
Slide 79: In-store mode
In-store mode T E C H - D R I V E N S O L U T I O N S TO S T R E A M L I N E T H E S H O P P I N G E X P E R I E N C E A N D S AV E T I M E Quickly navigate Find Review through the store product locations product specs
Slide 80: New Dwell technology solution
New Dwell technology solution H E L P I N G O U R A S S O C I AT E S F I N D O U R C U S TO M E R S W H O N E E D A S S I S TA N C E Leverages AI computer vision to identify Sends associates to serve where customers are lingering in aisles the customers needing help
Slide 81: Product knowledge at our fingertips
Product knowledge at our fingertips A I - P O W E R E D S TO R E C O M PA N I O N O N M O B I L E S M A RT D E V I C E S F O R F R O N T L I N E Provides product Customized recommendations based to Lowe’s on project type products and policies Collects feedback from associates
Slide 82: New store growth
New store growth E X PA N D I N G S TO R E B A S E TO S E RV E FA S T- G R O W I N G M A R K E T S , W I T H 1 0 - 1 5 N E W S TO R E S P E R Y E A R
Slide 83: Store operations PPI
Store operations PPI Finalize front-end transformation Improve omni fulfillment experience Optimize freight flow Perpetual Productivity Improvement Further reduce return rates Leverage new Dwell technology
Slide 84: Home Services & Store Operations recap
Home Services & Store Operations recap Easy-to-use home Enhance customer Drive New store services solutions experience productivity growth
Slide 85: Supply Chain
Supply Chain M A R G I V A G E L L , E X E C U T I V E V I C E P R E S I D E N T, S U P P L Y C H A I N
Slide 86: Total Home Strategy 2025
Total Home Strategy 2025 CAPTURING MARKET SHARE ACROSS DIY AND PRO Drive Accelerate Expand Create a Increase Pro penetration online sales home services loyalty space ecosystem productivity Helping to solve problems and fulfill dreams for the home
Slide 87: Supply chain transformation, 2018-24
Supply chain transformation, 2018-24 I M P R O V I N G O U R E F F I C I E N C Y, S P E E D A N D F L E X I B I L I T Y Network Market delivery Flow Fast & flexible capacity and for big & bulky management delivery options service products
Slide 88: Recent wins, 2023-24
Recent wins, 2023-24 Finalized nationwide rollout Expanded parcel Extended same-day delivery of Market Delivery Model delivery capabilities through Gig network
Slide 89: Supply chain overview
Supply chain overview Regional Distribution 130+ Centers (RDC) Bulk Distribution Parcel Stores Centers (BDC) FACILITIES WITH Flatbed Fulfillment Online Fulfillment Total Home 65+ Centers (FFC) Centers Flatbed MILLION SQUARE FEET Distribution Centers (FDC) Import Distribution Centers (IDC) Cross-dock
Slide 90: Enhanced supply chain planning
Enhanced supply chain planning M O D E R N I Z I N G O U R I N V E N TO RY R E P L E N I S H M E N T A N D D E M A N D P L A N N I N G S Y S T E M S FROM TO Multiple interfaces Simplified & unified experience Demand Purchase Replenishment & Planning System Order System Allocation System Demand Plann
Slide 91: Enhancing Pro fulfillment capabilities
Enhancing Pro fulfillment capabilities A S S E T- L I G H T A P P R O A C H T H AT L E V E R A G E S E X I S T I N G FA C I L I T I E S A N D P R O E X T E N D E D A I S L E Big & Bulky 0 0 Flatbed Fulfillment Market Delivery Center (FFC) 0 0 Pro Extended Aisle Store Fulfillment Pro Jobsite Delivery
Slide 92: Flowing more through market delivery
Flowing more through market delivery A D D I N G N E W B I G & B U L K Y P R O D U C T S T H R O U G H M A R K E T D E L I V E RY Vendor Bulk DC Cross-dock 3PL delivery terminal 1 2 3 4 Customer Currently moving Adding generators and appliances, riders, grills, larger riding mowers water heaters and
Slide 93: Supply chain PPI
Supply chain PPI Reducing transportation costs Rationalizing our footprint Perpetual Productivity Improvement Leveraging technology & process optimization
Slide 94: Supply chain recap
Supply chain recap C ATA LY S T F O R S A L E S A N D P R O D U C T I V I T Y Improve end-to-end Increase speed Enhance Pro & inventory visibility to shelf DIY fulfillment capabilities
Slide 95: Human Resources
Human Resources J A N I C E D U P R É , E X E C U T I V E V I C E P R E S I D E N T, H U M A N R E S O U R C E S
Slide 96: Becoming the employer of choice in retail
Becoming the employer of choice in retail Good jobs Sense of Promising belonging futures Industry-leading participation rate of >90% in our annual employee engagement survey
Slide 97: Good jobs
Good jobs S TA RT I N G W I T H G O O D PAY, C O M P R E H E N S I V E B E N E F I T S A N D C O M P E T I T I V E B O N U S E S $4B+ in incremental Competitive wages, Flexible and front-line wages bonuses & benefits dependable and share-based scheduling compensation (2018–24)
Slide 98: Sense of belonging
Sense of belonging C O N N E C T I N G W I T H O U R A S S O C I AT E S B Y E N G A G I N G AT W O R K A N D I N T H E C O M M U N I T Y
Slide 99: Commitment to diversity & inclusion
Commitment to diversity & inclusion W E ' V E C H A N G E D O U R A P P R O A C H B U T N O T O U R VA L U E S PAST CURRENT 1. Eight separate Business 1. One associate engagement group, Resource Groups (BRGs), only supported across field and corporate supported in corporate offices 2. Concentrate on
Slide 100: Lowe's senior leadership team
Lowe’s senior leadership team H I R I N G A N D P R O M O T I N G O N TA L E N T A L O N E
Slide 101: Diversity results
Diversity results O U R C O M M I T M E N T I S R E F L E C T E D I N T H E R E S U LT S TEAM 2018 DIVERSITY %1 2024 DIVERSITY %2 BPS IMPROVEMENT BOARD 46 % 62 % 1600 EVPs 10% 67% 5700 SVPs 37% 63% 2600 1 Figures as of Q1 2018 2 Figures as of Q4 2024
Slide 102: Opportunities for career advancement
Opportunities for career advancement R E TA I N I N G TA L E N T A N D C R E AT I N G C A R E E R PAT H S New frontline positions added since 2018 >85% ~90% 10,000 2,500+ Department Assistant Store Supervisors Managers Store leadership Store leaders started roles filled internally in hourly roles
Slide 103: Support for skilled trades education
Support for skilled trades education A D D R E S S I N G T R A D E L A B O R S H O RTA G E I N U . S . Pre-apprentice development program 5-year, $50 million commitment for Lowe’s associates to train 50,000 tradespeople
Slide 104: Becoming the employer of choice in retail
Becoming the employer of choice in retail Good jobs Sense of Promising belonging futures
Slide 105: Financial update
Financial update BRANDON SINK, CHIEF FINANCIAL OFFICER
Slide 106: Affirming 2024 financial outlook
Affirming 2024 financial outlook ~$ 83.0-83.5B Sales 12.3 to 12.4 Adjusted Operating Margin1,2 % Comparable Sales (-3.0% to -3.5%) $ 11 - 11 .80 $ Adjusted Diluted EPS2 .90 ~$ 2B Capital Expenditures 1 Adjusted Operating Margin represents Adjusted Operating Income as a percentage of Sales. 2 Adjuste
Slide 107: 2025 home improvement sector outlook
2025 home improvement sector outlook BALANCE OF EXPECTED DEMAND DRIVERS AND PERSISTENT CHALLENGES TA I LW I N D S HEADWINDS Home price appreciation Elevated interest & mortgage rates Record oldest U.S. housing stock Weak consumer sentiment Real disposable income growing Lock-in effect faster than in
Slide 108: Investing in the Total Home Strategy
Investing in the Total Home Strategy D R I V I N G L O N G - T E R M S H A R E G A I N S T H R O U G H M U LT I P L E G R O W T H I N I T I AT I V E S Drive Accelerate Expand Create a Increase Pro penetration online sales home services loyalty space ecosystem productivity Helping to solve problems a
Slide 109: 2025 scenario planning
2025 scenario planning U N C E RTA I N T Y A R O U N D T I M I N G A N D V E L O C I T Y O F H O M E I M P R O V E M E N T M A R K E T R E C O V E RY Fiscal 2025 Scenarios1,2,3 OUTLOOK ROBUST WEAK MODERATE MARKET 20243 MARKET MARKET TOTAL SALES $83.0 – 83.5B $87B $84B $82B Comp Sales (3.5%) – (3.0%)
Slide 110: FY 2026+
FY 2026+ A F T E R E X P E C T E D H I M A R K E T R E T U R N T O S U S TA I N A B L E G R O W T H
Slide 111: Returning to long-term market growth
Returning to long-term market growth O N C E H O M E I M P R O V E M E N T M A R K E T S TA B I L I Z E S , E X P E C T A N N U A L L S D TO M S D G R O W T H R AT E S MEDIUM-TO-LONG TERM MARKET OUTLOOK (3 TO 5 YEARS) Base HI Market Outlook Accelerated HI Market Outlook RELEVANT MARKET GROWTH RELEVA
Slide 112: Lowe's profit expansion
Lowe’s profit expansion S A L E S L E V E R A G E A N D P R O D U C T I V I T Y G A I N S D E L I V E R O P E R AT I N G M A R G I N A N D R O I C E X PA N S I O N Expectations for 2026+ after market returns to sustainable growth Base Accelerated Market Growth Market Growth (+LSD) (+MSD) COMP SALES
Slide 113: Merchandising and Supply Chain PPI
Merchandising and Supply Chain PPI M E R C H A N D I S I N G A N D S U P P LY C H A I N P P I M U LT I - Y E A R I M PA C T KEY EFFORTS AV E R A G E A N N U A L I M PA C T KEY EFFORTS ~$ 500M Product cost management Increase private brand penetration • Optimize product margins to support every day c
Slide 114: OPEX Productivity
OPEX Productivity S TO R E O P E R AT I O N S A N D O T H E R O P E X P P I AV E R A G E A N N U A L I M PA C T KEY EFFORTS ~$ 500M Finalize front-end transformation Improve omni fulfillment experience • Supports Lowe’s value commitment to customers: We Help. You Save. Optimize freight flow • Drive
Slide 115: Value creation roadmap
Value creation roadmap Core operational excellence Significant cash flow generation Enhanced shareholder Optimized capital returns deployment
Slide 116: Robust shareholder returns
Robust shareholder returns R O B U S T C A S H F L O W S A N D B E S T- I N - C L A S S C A P I TA L A L L O C AT I O N D R I V E VA L U E C R E AT I O N Expectations for 2026 and beyond after market returns to sustainable growth OPERATING CAPITAL NET DEBT CASH AVAILABLE CASH FLOWS EXPENDITURES TO R
Slide 117: Strong record of capital allocation
Strong record of capital allocation FUND GROWTH RETURN OF CAPITAL Invest in Strategic Balance Sheet Share Dividends the Business Outlays Management Repurchases GROWTH OPPORTUNISTIC STRONG CONSISTENCY VALUE-ENHANCING • Run the business • Build or acquire • Return to target • Target payout ratio • Ret
Slide 118: Key investment highlights
Key investment highlights Favorable long-term industry Well-capitalized and investing trends & resilient business model in omnichannel capabilities Well-positioned to capture share Significant productivity across DIY and Pro expansion opportunity Responsible corporate citizen Disciplined capital all
Slide 119: Appendix
Appendix
Slide 120: Reconciliation of Non-GAAP measures
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 co
Slide 121: Operating Performance
Operating Performance The Company has provided the non-GAAP financial measures of adjusted operating income; adjusted operating margin; and adjusted diluted earnings per share for fiscal year 2018. These measures exclude the impacts of certain items, as further described below, not contemplated in t
Slide 122: Operating Performance
Operating Performance The following measures are presented for comparison of operating performance for the fiscal year ended February 1, 2019: Year Ended Adjusted Operating Income February 1, 2019 (in millions, except percentage data) Net Sales, As Reported $ 71,309 Operating Income, As Reported $ 4
Slide 123: Operating Performance
Operating Performance Year Ended February 1, 2019 Pre-Tax Net Adjusted Diluted Earnings Per Share Tax1 Earnings Earnings Diluted Earnings Per Share, As Reported $ 2.84 Canadian goodwill impairment 1.17 (0.03) 1.14 Orchard Supply Hardware charges 0.68 (0.17) 0.51 U.S. and Canada charges 0.33 (0.08) 0
Slide 124: Capital / Asset productivity measures
Capital / Asset productivity measures Return on Invested Capital Return on Invested Capital (ROIC) is calculated using a non-GAAP financial measure. Lowe's believes ROIC is a meaningful metric for analysts and investors as a measure of how effectively the Company is using capital to generate financi
Slide 125: Capital / Asset productivity measures
Capital / Asset productivity measures ROIC For the Periods Ended (in millions, except percentage data) November 1, 2024 February 1, 2019 Numerator Net Earnings $ 6,853 $ 2,314 Plus: Interest expense, net 1,333 624 Operating lease interest1 172 206 Provision for income taxes 2,137 1,080 Lease adjuste