CLAIM #37939 · Lowe's Companies Inc (LOW) · 2022Q2 earnings call · Aug 17, 2022 · due Dec 31, 2022
“We expect modest product margin improvement, as you mentioned, offset by higher supply chain costs.”
Brandon Sink · CFO
In context
“t we've launched this year, leveraging points and Pro loyalty have exceeded our expectations, and we have a lot more to come. And we'll provide some level of granularity in the future, but it's too early to share it externally, but I will tell you that we're pleased with the progress. Steven Forbes: I appreciate the color, Marvin. And then maybe just a quick follow-up for Brandon. Based on the gross margin guidance, it sort of implies a relatively flattish outlook for the back half. Clearly, we got the supply chain build-out and transportation cost pressure. So maybe there's any help on the offset if it's from mix or just product margin strength? Brandon Sink: Yes. We have -- we feel like we have a pretty good handle on the gross margin drivers of the business here over the second half. We expect modest product margin improvement, as you mentioned, offset by higher supply chain costs. That's inclusive of distribution, transportation. We mentioned the drag in Q2 and the expanded network. Shrink credit, fairly neutral as we look across the second half as it relates to other contributors to margin. So full year unchanged as it relates to guiding to slightly up from a gross margin standpoint. We feel really, really good about our ability to deliver that. Operator: Our next question is from the line of Scot Ciccarelli with Truist Securities. Scot Ciccarelli: So another DIY question. I know you bounced around this a little bit, but we -- the cycling of stimulus, the short spring season, that all makes sense as reasons why DIY would be negative. And I know this is an opinion, but I guess the question is, what gives you confidence that the softer trends you've seen in DIY ov”
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SEC filings for LOW ↗ · Claim quote is verbatim from the 2022Q2 earnings call.