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CLAIM #38043 · Lowe's Companies Inc (LOW) · 2023Q1 earnings call · May 23, 2023 · due Dec 31, 2023

Simeon, largely the same, roughly flat is what we've spoken to as it relates to gross margin over the course of the year.

Brandon Sink · CFO

PENDING
graded after results covering Dec 31, 2023 are reported

In context

cycle over more normal pricing over the balance of the year and then continued strength in what we're seeing with the online business and in core DIY businesses like appliances and paint. So taking all that into account when we look at the second half, we're looking at that in line with the full year guide. Simeon Gutman: That's helpful. And then maybe a follow-up, sticking with the guidance. If you looked at whether it was the weak or even the moderate cases beforehand, margins were going to hold up reasonably well for a couple of reasons, a lot of your internal initiatives. Those drivers that were holding up margin, are those the same? Are you on a faster trajectory? Are you pivoting? Are you prioritizing some over the other? If you could share some of that, please? Brandon Sink: Yes. Simeon, largely the same, roughly flat is what we've spoken to as it relates to gross margin over the course of the year. The puts and takes that we've talked through still relatively consistent. The headwinds from the supply chain expansion and investments in the Pro growth initiatives. The benefits and Bill covered this when he talked through merch productivity, higher private brands penetration, lower commodity transportation costs and then the pricing initiatives that we're working through. So those largely are going to drive the outputs. And then just from an SG&A standpoint, that's where we're going to see the bulk of the leverage, 40 to 60 basis points reflected in the new guide. That's going to offset the planned wage increases and the strategic investments. And then on the lower sales, just the change from the previous guide, it's mainly volume related. Operator: Our next question is from the line

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SEC filings for LOW · Claim quote is verbatim from the 2023Q1 earnings call.