Lowe’s Cos. Inc. reported no change in comparable online sales in the fiscal fourth quarter ended Feb. 2. Total sales declined 17% to $18.60 billion in the quarter, from $22.45 billion in Q4 2022.

Meanwhile, comparable sales declined 6.2% for the quarter due to slowing demand from do-it-yourself (DIY) customers and impact from winter weather, Lowe’s said. Net earnings for the quarter were $1.02 billion, an increase from $957 million in the year-ago period. 

“This quarter, we delivered strong operating profit and improved customer satisfaction, despite the continued pullback in DIY spending,” CEO Marvin Ellison said in a statement. “We remain confident in the long-term strength of the home improvement market, and we are making the right investments in our Total Home strategy to take share.”

Total sales declined 11% for the full year, to $86.38 billion from $97.06 billion in 2022. However, net earnings increased to $7.73 billion in 2023 from $6.44 billion in 2022.

Lowe’s ranks No. 12 in the Top 1000, Digital Commerce 360’s database of North America’s online retailers by web sales. The retailer is also the third-largest retailer in the Hardware and Home Improvement category.

Lowe’s online sales in Q4

Online comparable sales were flat year over year in Q4, Ellison told investors on a Feb. 27 earnings call. He did not share the dollar amount of online sales, or specify what percentage of total sales were made online.

Conversion rates increased while the number of returns declined in the quarter, he said. Both metrics are “positive indicators that customers are responding to our faster fulfillment and improved digital experience,” he told investors.

The home improvement retailer is leaning on new technology to improve the online and omnichannel buying experiences. Ellison pointed to Lowe’s Style Studio, the new app for the Apple Vision Pro that allows consumers to design and visualize changes to their kitchens. He also noted the use of generative artificial intelligence (AI) in a ChatGPT home improvement plugin. 

Buy online, pick up in store (BOPIS) remains a focus for Lowe’s, too. The retailer continued its rollout of a redesigned front end of the store where customers pick up BOPIS items. In 2023, it completed 450 reconfigurations in stores, with more than 500 more planned for 2024.

Lowe’s DIY sales

Sales to DIY customers are facing challenges in the macroeconomic environment, Lowe’s said. 

“Macroeconomic factors like persistent inflation and a stagnant housing market continue to make DIY customers and consumers hesitant to spend on big-ticket purchases for their homes, and those who did engage in home improvement activities took on smaller non-discretionary projects with a heightened focus on value,” Ellison said.

That especially impacted kitchen, bath, flooring and appliance categories, he said. Extreme weather in January also led to a drop in customer traffic, after November and December showed improvement from Q3.

Lowe’s announced a loyalty program aimed at DIY customers in January. MyLowe’sRewards was created to push customers to choose Lowe’s over other home improvement competitors and drive traffic and return visits, Ellison said. The program will roll out across the U.S. in March as customers start spring projects, he said.

B2B sales at Lowe’s

Sales to Pros, which is how Lowe’s refers to B2B customers, fared better than DIY sales, Ellison said. Comparable B2B sales were flat in Q4. 

Building materials were the best-performing category in the quarter, with positive comparable sales, Lowe’s said. Those sales grew primarily from a demand for roofing and drywall materials from B2B customers.

Lowe’s Pro customers are primarily small- to medium-sized business owners. Based on a recent survey, those customers are feeling cautiously optimistic about 2024, he said.

“We remain focused on executing our holistic Pro strategy with more convenient fulfillment options, an enhanced product assortment, creating a best-in-class digital experience, and a rewards program that incentivizes long-term loyalty,” Ellison said.

He added that Lowe’s plans to grow its B2B sales twice as fast as the overall market.

Lowe’s earnings

For its fiscal fourth quarter ended Feb. 2, 2024, Lowe’s reported:

• Total sales declined 17% year over year to $18.60 billion.
• Comparable sales declined 6.2%.
• Net earnings were $1.02 billion, an increase from $957 million in the year-ago period. 

For its fiscal year ended Feb. 2, 2024 Lowe’s reported:

• Total sales declined 11% to $86.38 billion.
• Net earnings increased to $7.73 billion from $6.44.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s comparison of Home Depot and Lowe’s online sales.

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