CLAIM #38003 · Lowe's Companies Inc (LOW) · 2022Q4 earnings call · Mar 1, 2023 · due Feb 2, 2024
“Yes, Brian, I'll take that and, again, kind of connect it to the guide. So our guide at the midpoint for lumber, in particular, assumes a normalized pricing environment, certainly considered to what we've seen for the last [ 30 ] years.”
Brandon Sink · CFO
In context
“what Marvin was describing, we are seeing those overall transactions continue to improve across the year. So when we look at '23, still expecting outperformance with the Pro but expecting that gap between Pro and DIY to continue to close and tighten, and that's what's reflected in our guide for next year. Brian Nagel: That's very helpful. And then my follow-up question, just with regard to lumber prices. So you discussed here -- and we get it, this is kind of a pass-along dynamic when prices declined as a negative for sales. But if we've gotten to the point where lumber prices have declined so much of -- that's actually becoming a potential stimulant to demand, I don't know if you're seeing this in your business or maybe in some of pooling of your professional customers? Brandon Sink: Yes, Brian, I'll take that and, again, kind of connect it to the guide. So our guide at the midpoint for lumber, in particular, assumes a normalized pricing environment, certainly considered to what we've seen for the last [ 30 ] years. And within that lumber assumption, as you heard in my prepared remarks, expecting headwind in both Q1 and Q2. And I'll call out also if that -- when we look at lumber pricing currently, if that were to play out across the remainder of the year, it actually puts another 100 basis points of pressure on the midpoint of the guide. But to your point, within that, we are expecting an offset in units, and there's potential that, that could be a stimulant for our business. But again, right now, we're expecting and have considered at the midpoint of our guide, just more normalized pricing and a slight rebound in units in the next year. Operator: The next question comes from the line of Karen Short with Credit Suisse. Karen Short: So just on 2 questions. You guided to flat to down 2% comps. S”
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SEC filings for LOW ↗ · Claim quote is verbatim from the 2022Q4 earnings call.