Lowe's Companies, In. (NYSE: LOW) saw its shares gain momentum Wednesday on reporting reported fourth-quarter financial information.
The company, out of Mooresville, North Carolina, reported net earnings of $509 million and diluted earnings per share of $0.66 for the quarter ended Jan. 31, 2020, which included pre-tax operating costs and charges of $185 million further described below, compared to a net loss of $824 million and diluted loss per share of ($1.03) in the fourth quarter of 2018.
Excluding the impact of these charges, adjusted diluted earnings per share increased 17.5% to $0.94 from adjusted diluted earnings per share of $0.80 in the fourth quarter of 2018.
Those pre-tax operating costs resulted from the company's previously disclosed strategic review of its Canadian operations and closure of its Mexico business, resulting in pre-tax operating costs and charges of $185 million consisting of inventory liquidation, accelerated depreciation and amortization, severance and other costs.
Sales for the fourth quarter were $16.0 billion compared to $15.6 billion in the fourth quarter of 2018, and comparable sales increased 2.5%.
Comparable sales for the U.S. home improvement business increased 2.6% for the fourth quarter.
To quote CEO Marvin Ellison, "In the fourth quarter, we delivered profitability that exceeded our expectations given strong expense management, improving gross margin and enhanced process execution. Our sales growth was driven almost entirely by our U.S. brick and mortar stores, supported by our investments in technology, store environment and the Pro business."
Shares advanced $1.50, or 1.3%, to $120.02
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