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CLAIM #37912 · Lowe's Companies Inc (LOW) · 2022Q1 earnings call · May 18, 2022 · due Aug 17, 2022

we're just anticipating that, that's going to give us some headwind in Q2.

Marvin Ellison · CEO

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Committed
we're just anticipating that, that's going to give us some headwind in Q2.
Reported
Gross margin was 33.24% of sales in the second quarter, down 54 basis points from last year.

In context

half and up slightly for the full year. So that's the reason we didn't flow the beat to the full year. Marvin Ellison: So Simeon, this is Marvin. I think it's important for me to note that we're really pleased with the profit performance in the first half. For a retailer our size is really difficult to have declining sales on a year-over-year basis and have leverage from an operating margin and gross margin perspective. That took a lot of work and a lot of operational discipline from the supply chain, cost management, payroll and expense management, et cetera. And to Brandon's point, we're in this unprecedented environment of lumber inflation and deflation. And so we're just planning conservatively because as we say, the last couple of weeks, we start to see lumber starting to shift, and we're just anticipating that, that's going to give us some headwind in Q2. Simeon Gutman: That's helpful. My follow-up, it's related on fuel prices. And Brandon, you just touched on transportation costs. Does this mean that you're adjusting your pricing as well real time? I know you mentioned you'll feel a little pressure, so maybe you don't fully offset it. And does the level of inflation help your business on the top line? Or you assume that there might be some unit degradation as pricing may continue to tick higher? Marvin Ellison: So let me take -- this is Marvin. I'll take the first part of that. We've spent a lot of time putting in improved systems from a pricing standpoint. So we are scraping and we're doing pricing analysis real time, both in-store and online by geography. One thing that Bill put in place early on when he arrived is that every day comp

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SEC filings for LOW · Claim quote is verbatim from the 2022Q1 earnings call.