1、32023 ANNUAL REPORTLOWES COMPANIES,INC.2023 ANNUAL REPORT2023Annual ReportTogether,deliver the right home improvement products,with the best service and value,across every channel and community we serve.Lowes Companies,Inc.(NYSE:LOW)is a FORTUNE 50 home improvement company serving approximately 16 m

2、illion customer transactions a week in the United States.With total fiscal year 2023 sales of more than$86 billion,Lowes operates over 1,700 home improvement stores and employs approximately 300,000 associates.Based in Mooresville,N.C.,Lowes supports the communities it serves through programs focuse

3、d on creating safe,affordable housing and helping to develop the next generation of skilled trade experts.For more information,visit L12023 ANNUAL REPORT1.Adjusted operating margin is a non-GAAP financial measure,and return on invested capital is calculated using a non-GAAP financial measure.Refer t

4、o the“Non-GAAP Financial Measures Reconciliation”section for additional information as well as reconciliations between the Companys GAAP and non-GAAP financial results.In 2023,I celebrated my fifth year with Lowes.As I look back over this timeframe,I am pleased with what our Associates have accompli

5、shed.We grew U.S.sales by more than$20 billion and adjusted operating margin1 by 475 basis points.We improved return on invested capital1 from 11%in 2018 to over 36%in 2023.And we improved customer satisfaction scores nearly 600 basis points across homeowners and Pros.Dear ShareholdersLast year we d

6、elivered solid operating results despite a steep pullback in DIY spending across the home improvement industry.Our disciplined expense management and focus on productivity enabled us to deliver an adjusted operating margin1 of 13.3%a 30 basis point improvement over 2022.Consistent with our best-in-c