We take a look at the 3rd quarter 2020 earnings report of Lowe's a home improvement company serving more than 18 million customers a week. More about Lowe's … I’ll take this question. Does ’21 revert back down to this prior target? And at the December 9, Investor Update, we’re going to be a lot more specific about kind of where we are in this transformation and how we see the out-years and where we believe that we can really start to pick up additional market share. So, we expect that gap to continue to close as we get into 2021. Our associates have also remained steadfast in their commitment to providing safe shopping experience in our stores, so our customers feel comfortable returning for another shopping trip to Lowe’s. I don’t know if Dave has anything to add. Lowe's Companies last posted its quarterly earnings data on November 17th, 2020. Marvin will discuss several growth opportunities that are expected to facilitate further market share gains. But that also allows us to continue to make investments in things like our fulfillment teams, the supervisors that we’ve added to the Pro area of the business and the incremental expense that we incurred there. So the question is, and I know it’s been asked a couple of different ways today, but if comps are positive, you could sort of manage through next year from a top line perspective. With that, I’ll now turn the call over to Bill. And a quick follow-up is, I think, year-to-date, we’ve incurred about $1.1 billion of COVID associated benefits and additional costs. Lowe's Reports Q3 Sales Increase of 28%, Earnings Decline 34% Mooresville, NC, November 18, 2020-Lowe’s reported Q3 2020 sales of $22.3 billion, compared to Q3 … Thanks. In October, we took advantage of a favorable interest rate environment to reduce our interest expense through a cash tender offer for $3 billion of our higher coupon bonds. The only thing I would add to that is that obviously in November, the associates will receive incremental compensation. Lowe’s Companies has generated $5.72 earnings … Consistent with our approach throughout 2020, we continue to expect reduced promotional activity compared to the prior year. In closing, I’m extremely pleased with our outstanding results for the first nine months of the year. And while we’ve seen exponential online growth this year, we still have tremendous growth runway in front of us as Lowes.com business is meaningfully underpenetrated, with online representing only 7% of our sales. The consensus EPS Estimate is $1.35 … So, you see incremental flow-through as that model is built out. These incremental costs were partially offset by payroll leverage of 90 basis points related to higher sales volume and improved store operating efficiencies, occupancy leverage of 35 basis points, 35 basis points of leverage in employee benefits, and advertising leverage of 25 basis points. I was little surprised to hear that the product mix was favorable as the gross margin, just given that lumber sales growth was strong in this usually a lower margin category. Our second priority remains providing support for our community, including healthcare providers and first responders. The consensus EPS Estimate is $1.96 … We have a strong balance sheet, and we are committed to a disciplined capital allocation program, which will lead to a longer-term shareholder value creation. That is an example of us not running this business quarter-to-quarter. A shopper visits a Lowe’s hardware store in Philadelphia, Pennsylvania, November 4, 2020. So, I think the original thesis of all the investments that we put forth, I think, are very valid. A shopper visits a Lowe’s hardware store in Philadelphia, Pennsylvania, November 4, 2020. And Michael, I’ll just add that, and Marvin says — and very important there, he said we decided to accelerate the program. • PayPal expects revenue to grow in the range of 20%–25% at current spot rates and 20%–25% on an FXN basis. With the re-platforming of Lowes.com to the cloud, we have been rapidly deploying enhancements to deliver a better customer experience, including enhanced online delivery scheduling, so that customers can more efficiently self-serve and select the delivery time that is most convenient for them or easily reschedule as the need arises. We’ll have a much better perspective on Q4 when we speak to you and other investors on December 9th. And I’ll now turn the call over to Joe. However, we understand that creating an efficient and world-class omni-channel experience will determine retail winners and retail losers in the future. We’re also raising our game with the Pro as we expand our brand and product offerings to meet their unique needs. And at that time, we’ll have better perspective on ’21 and we will be able to provide a lot more context than what we’re doing today. We actually feel great about the transformation. Gross margin was 32.7% of sales in the quarter, an increase of 28 basis points compared to the third quarter of ’19. Thank you, and good morning, everyone. I wondered if I could ask about Pro versus DIY. Lowe's Reports Third Quarter 2020 Sales And Earnings Results -- U.S. And we’re supporting our communities through hiring as we’re bringing on 20,000 associates across our U.S. stores and distribution centers this holiday season to support elevated levels of customer demand. Hey, good morning, everyone. Sure. The country continues to face significant challenges presented by COVID-19, and this is still a very unpredictable business environment. At $15.7 billion, inventory was higher compared to the prior-year levels as we stocked up on product to meet elevated customer demand throughout the quarter. Thank you. This will allow us to continue to leverage our payroll expense and continue to drive our omni business. Throughout all the uncertainty we face, we continue to be guided by three key priorities. Mark Makela | Reuters Lowe’s on Wednesday reported quarterly same-store sales growth of more than 30%, including a doubling of online sales, as the coronavirus pandemic pushed more people to its stores and website to invest in their homes. Lowe's Companies has generated $5.72 earnings per … I’d now like to spend just a few minutes discussing our outlook for the fourth quarter. Continuing our commitment to return capital to shareholders through value-enhancing share repurchases, our guidance assumes approximately $3 billion in share repurchases in the fourth quarter. Here with me today are Marvin Ellison, our President and Chief Executive Officer; Bill Boltz, our Executive Vice President, Merchandising; Joe McFarland, our Executive Vice President, Stores; and Dave Denton, our Executive Vice President and Chief Financial Officer. What do social media companies have in store for 2021. No, we feel very strongly that the opportunity is ahead of us from a gross margin perspective. We incurred capital expenditures of $462 million as we invest in the business to support our strategic initiatives, including our omni-channel capabilities. After our prepared remarks, we will host a Q&A session. Adjusted operating income margin increased 55 basis points to 9.81% of sales. By Demitri Kalogeropoulos, MotleyFool. One of the reasons we’re making all of these investments in the Pro — and as Joe and I both mentioned, I mean, we grew the business over 20% in the third quarter — is because we’re anticipating this post-COVID retail environment and we know this customer is very important for us. What Happened . Any opinion expressed in the transcript does not necessarily reflect the views of AlphaStreet, Inc. © COPYRIGHT 2020, AlphaStreet, Inc. All rights reserved. We are also eliminating merchandising base without planograms. Okay. Q3 2020 Lowe's Companies, Inc. Earnings Conference Call. Now, Q3 benefited from a $0.02 timing shift into Q3 at the expense of Q4. Thanks, Marvin. Home Depot's comparable metrics were 25% in … Lowe's Q2 2020 Earnings Call Aug 19, 2020, 9:00 a.m. And I’d say, I can’t call out just one category where we’re seeing improvements, because we’re seeing improvements more or less up and down the P&L across all merchandising categories in most part. Actually, lumber did put some pressure on gross margin in the quarter as it typically does in an inflationary environment. Thank you. Commodity inflation drove a benefit of approximately 340 basis points to comps in the quarter. Let’s not get hung up on where we end ’20, where we end ’21. So as you’ve gone through this transformation, you mentioned you’re ahead of schedule in realizing some of the productivity or cost savings that you expected like the split between tasking and service, and yet now we’re seeing maybe a bit of an acceleration in some of the investment of the business. • PayPal expects revenue to grow in the range of 20%–25% at current spot rates and 20%–25% on an FXN basis. ET. Thanks. It’s probably a little early to talk specifically about ’21, but just in general, I think, what you’re seeing is we have a very focused effort around store productivity and managing both labor and cost within our stores. These significant investments, coupled with our fourth quarter typically being our smallest revenue quarter, should result in adjusted operating margin performance essentially flat to prior year levels. The home improvement retailer reported $1.98 EPS for the quarter, topping analysts' consensus estimates of $1.97 by $0.01. Medtronic (NYSE: MDT) reported third-quarter 2021 financial results before the regular market hours on Tuesday. And as part of the store reset, there’ll be two other noticeable changes. Kate, it’s really difficult for us to give you a very specific forecast on that. Moreover, it spent $1,172 million toward capital expenditure in the first nine months of fiscal 2020. By Forex News November 18, 2020 17 views. Click here for webcast. Now, turning to the income statement. I will now turn the call over to Kate Pearlman, Vice President of Investor Relations. We believe these changes will create a more intuitive shopping experience for our customers, especially to Pro. And we’ll be able to provide more context at our Investor Update in December. And when we update you all in December, we will provide some perspective on how we see revenue and operational performance as well as profitability in 2021, but we feel really good about our progress and we feel good about being in a position now to transition to a market share focus ahead of schedule. On the credit revenue side of the house, yes, we’re having a little bit of pressure. And if we have more context and more detail on December 9th, we will be more than happy to share. Moreover, it spent $1,172 million toward capital expenditure in the first nine months of fiscal 2020. Hey, Scot, I’m going to let Joe McFarland talk a little bit about our productivity initiatives. Also, lumber inflation increased inventory values by approximately $250 million. Thanks for taking my question. And Joe has absolutely flipped that equation with the stores. We know this is a great brand. Contents: Prepared Remarks; Questions and Answers; Call Participants; Prepared Remarks: Operator. We still see a very strong line of sight to that. We are now ready for questions. But Lowe’s earnings […] Our Lowes.com sales grew 106% as we continue to see an increase in both DIY and Pro customer demand by contactless shopping options. We’re not going to get this back specifically. For the quarter, we expect total and comparable sales growth of between 15% and 20%. Q3 2020 Lowe's Companies, Inc. Earnings Conference Call Skip to main content Who We Are Who We Are. In Q3, we generated GAAP diluted earnings per share of $0.91 compared to $1.36 last year, a decrease of 33%. The home improvement retailer reported $1.98 EPS for the quarter, topping analysts' consensus estimates of $1.97 by $0.01. And over the near-term, our investment thesis will remain laser-focused on enhancing the growth and profitability of our core retail business. And then in December, our Winning Together program kicks into — kicks into play. Now, my comments from this point forward will include certain non-GAAP comparisons where applicable. A shopper visits a Lowe’s hardware store in Philadelphia, Pennsylvania, November 4, 2020. Mark Makela | Reuters. These new touchscreen registers not only speed up cashier training from the old green screens, they also provide our customers with a faster checkout experience. Mark Makela | Reuters Lowe’s shares fell Wednesday after the home improvement retailer reported third-quarter earnings and a profit outlook slightly short of estimates, weighed down by higher labor costs and investments in its e-commerce business. Therefore, we are pleased with the current development of our omni-channel strategy thus far, and remain committed to making the necessary investments to provide our customers with choices to shop anyway they choose. Understood. So with that, I thank you. 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