Earnings Per Share

12 Months Ended

Feb. 02, 2024

The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company’s participating securities consist of share-based payment awards that contain a nonforfeitable right to receive dividends and, therefore, are considered to participate in undistributed earnings with common shareholders.

Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings per common share for 2023, 2022, and 2021:


	Years Ended
(In millions, except per share data)	February 2, 2024		February 3, 2023		January 28, 2022
Basic earnings per common share:
Net earnings attributable to Lowe's Companies, Inc.	$	7,726	$	6,437	$	8,442
Less: Net earnings allocable to participating securities	(20)		(21)		(33)

Net earnings allocable to common shares, basic	$	7,706	$	6,416	$	8,409
Weighted-average common shares outstanding	582		629		696
Basic earnings per common share	$	13.23	$	10.20	$	12.07


	Years Ended
(In millions, except per share data)	February 2, 2024		February 3, 2023		January 28, 2022
Diluted earnings per common share:
Net earnings attributable to Lowe's Companies, Inc.	$	7,726	$	6,437	$	8,442
Less: Net earnings allocable to participating securities	(20)		(21)		(33)

Net earnings allocable to common shares, diluted	$	7,706	$	6,416	$	8,409
Weighted-average common shares outstanding	582		629		696
Dilutive effect of non-participating share-based awards	2		2		3
Weighted-average common shares, as adjusted	584		631		699
Diluted earnings per common share	$	13.20	$	10.17	$	12.04

Anti-dilutive securities excluded from diluted weighted-average common shares	0.5		0.5		0.3