Lowe’s Companies Inc (NYSE:LOW) stock fell 0.036% (As on February 27, 11:24:48 AM UTC-4, Source: Google Finance) after the company posted better-than-expected fourth-quarter earnings driven by strong holiday performance and post-Hurricane rebuilding efforts, lifting retail sentiment. Comparable sales for the quarter increased 0.2%, driven by high-single-digit professional and online comparable sales, strong holiday performance, and rebuilding efforts in the wake of recent hurricanes. Gross margin was 32.9% of sales in the fourth quarter up 46 basis points from last year, driven by the benefits of our ongoing perpetual productivity improvement, or PPI initiatives, partly offset by supply chain investment costs. Adjusted SG&A of 21% of sales delivered 8 basis points versus prior year, driven by increased compensation and healthcare expenses, largely offset by benefits of multiple PPI initiatives. Adjusted operating margin rate of 9.4% of sales improved 36 basis points versus prior year. In 2024, LOW generated $7.7 billion in free cash flow. Capital expenditures totaled $548 million in the quarter. Adjusted debt to EBITDAR ended the year at 3.01 times, and the company delivered a return on invested capital of 32% for the year.

Meanwhile, next month in collaboration with OpenAI, the company will launch the first AI-powered Home Improvement Virtual Adviser on Lowes.com, leveraging the same technology that the associates are using on their store companion app to give the customers helpful advice as they tackle their home improvement projects.

LOW in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.93, beating the analysts’ estimates for the adjusted earnings per share of $1.84. The company had reported the adjusted revenue of $18.6 billion in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $18.3 billion.

For 2025, the company expects total sales between $83.5 billion and $84.5 billion. That compares to consensus estimates of $84.77 billion. Comparable sales are expected to be flat to an increase of up to 1% as compared to prior year. It expects diluted earnings per share of about $12.15 to $12.40 for 2025. That compares to the consensus estimate of $12.48. For fiscal 2025, the company expects Operating income as a percentage of sales (operating margin) to be in the range of 12.3% to 12.4% and Capital expenditures to be of approximately $2.5 billion as the company invest in the Total Home strategic priorities and begin to ramp up new store builds. In 2025, the company plans to open five to 10 new stores.