Annual Report Analysis
By: Wykithia Scott
For: Christine Errico
Accounting 100
June 2, 2013
Lowe’s Corporation Fiscal Year 2012

Lowe’s has been helping our customers improve the places they call home for more than 60 years. Founded in 1946, Lowe’s has grown from a small hardware store to the second-largest home improvement retailer worldwide. Sales grew over time and Lowe’s expanded all across the country and now operates stores not only in the United States, but also in Canada and Mexico. Although times have changed since Lowe’s first opened its doors in 1946, Lowe’s values have not— the company remains committed to offering high-quality home improvement products at everyday low prices, while delivering superior customer service. Lowe’s Companies, Inc. is a FORTUNE® 100 company that was incorporated in North Carolina in 1952 and has been publicly held since 1961. Lowe’s shares trade on the New York Stock Exchange (NYSE) under the ticker symbol LOW. Taking a closer look at the Lowe’s Corporation through their annual report will all one to see how the company has progressed over the years. (Lowes.com) Lowe’s delivered solid performance in 2012. Comparable store sales grew 1.4% and total sales grew 0.6% to $50.5 billion. Net earnings increased by 6.5% to $2.0 billion and diluted earnings per share increased 18.2% to $1.69. Operating cash flows, along with the net issuance of $1.4 billion of long-term debt, were used to acquire $1.2 billion in fixed assets and return $5.1 billion to shareholders through dividends and share repurchases. There are different factors that contribute to the financial statement present by Lowe’s. The key indicators that Lowe’s monitors include real disposable personal income, employment, home prices, housing turnover, and homeownership levels. We also monitor demographic and societal trends that shape home improvement industry