Lowe's Conference Call Highlights: Optimism Over Housing Market Continues

Following Lowe's Companies, Inc. (NYSE: L) third-quarter results which were reported on Wednesday morning, the company hosted a conference call to discuss its quarter and future outlook.

Q3 In Review

• As optimism over the housing market continued in the quarter, the company notes that homeowner desire to invest in their homes has been the highest since 2006.
• All 12-product companies generated positive comps.
• Comp sales were driven by an increase in comp average ticket and an increase in comp transactions.
• Fashion fixtures, millwork produced above-average comps.
• No net inflation impacts were noticed.
• Professional unit comps grew at a higher pace than the company average.
• Big ticket purchases above $500 rose by 9 percent.
• Gross margin declines of 9 percent in the quarter were driven by promotions.

Q4 Outlook

• Lowe's is adding more store space for holiday decorations.
• The ongoing port disturbance in the west coast won't impact holiday inventory.
• Impact on promotions will be the same as it was in the third quarter, largely focused around appliances.
• Management will share a long-term vision for the business at an investor and analyst conference on December 11.

Full Year Fiscal 2014 Outlook

• Total share repurchases are estimated to be $3.7 billion, $300 million more than previously projected.
• Higher level of share buybacks attributed to lower capital expenditures.