8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant To Section 13 or 15 (d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) February 25, 2008

LOWE'S COMPANIES, INC.

(Exact name of registrant as specified in its charter)

North Carolina	1-7898	56-0578072
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer  Identification No.)

1000 Lowe's Blvd., Mooresville, NC	28117
(Address of principal executive offices)	(Zip Code)
Registrant's telephone number, including area code	(704) 758-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02RESULTS OF OPERATIONS AND FINANCIAL CONDITION

On Februrary 25, 2008, Lowe’s Companies, Inc. (the “Company”) issued a press release, furnished as Exhibit 99.1 and incorporated herein by reference, announcing the Company’s financial results for the quarter and year ended February 1, 2008.

The information contained in this Current Report on Form 8-K, including the exhibit attached hereto, is being furnished and shall not be deemed to be "filed" for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, the information contained in this Current Report on Form 8-K shall not be deemed to be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933, as amended.

ITEM 9.01FINANCIAL STATEMENTS AND EXHIBITS

(c)EXHIBITS

99.1 Press Release dated February 25, 2008 announcing the financial results of the Company for its fourth quarter and year ended February 1, 2008.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	LOWE'S COMPANIES, INC.
Date:  February 25, 2008	By:	/s/ Matthew V. Hollifield
		Matthew V. Hollifield Senior Vice President and Chief Accounting Officer

EX-99.1

Exhibit 99.1

February 25, 2008

For 7:00 am EST Release

Contacts:                         Shareholders’/Analysts’ Inquiries:                                                                                       Media Inquiries:  

Robbin Moore-Randolph                                                                                                         Chris Ahearn

           704-758-3579                                                                                                                         ;       704-758-2304

LOWE’S REPORTS FOURTH QUARTER AND FISCAL YEAR 2007 EARNINGS

MOORESVILLE, N.C.  – Lowe’s Companies, Inc. (NYSE: LOW), the world’s second largest home improvement retailer, today reported net earnings of $408 million for the quarter ended February 1, 2008, a 33.4 percent decline over the same period a year ago.  Diluted earnings per share declined 30.0 percent to $0.28 from $0.40 in the fourth quarter of 2006.  For the fiscal year ended February 1, 2008, net earnings declined 9.5 percent to $2.81 billion while diluted earnings per share declined 6.5 percent to $1.86.

Sales for the quarter declined 0.3 percent to just under $10.4 billion.  For the fiscal year ended February 1, 2008, sales increased 2.9 percent to $48.3 billion.  Comparable store sales declined 7.6 percent for the fourth quarter and 5.1 percent for fiscal 2007.

“Fourth quarter and fiscal year 2007 sales fell short of our plan as we faced an unprecedented decline in housing turnover, falling home prices in many areas and turbulent mortgage markets that impacted both sentiment related to home improvement purchases as well as consumers’ access to capital,”explained Robert A. Niblock, Lowe’s chairman and CEO.  “While our results fell short of our expectations, I want to thank our more than 215,000employees whose customer focus allowed us to capture market share in both the quarter and the year.  Those market share gains combined with appropriate expense management in a very challenging environment for the home improvement industry allowed us to deliver respectable annual earnings per share.

“As we look to fiscal 2008, we know the next several quarters will be challenging on many fronts as industry sales are likely to remain soft,” Niblock continued.  “We remain focused on what we can control:  providing great customer service while managing expenses and offering customers the best shopping experience in home improvement.  As the year progresses, the recent Federal Reserve interest rate cuts and the approved fiscal stimulus package are expected tolend support to the broader economy and the consumer.  As a result, many of the headwinds facing the housing market and the home improvement industry should lessen,and consumers’ confidence in investing in and improving their homes should improve.”

During the quarter, Lowe’s opened 72 new stores including two relocations.  As of February 1, 2008, Lowe’s operated 1,534 stores in the United Statesand Canadarepresenting 174.1 million square feet of retail selling space, a 10.9 percent increase over last year.

A conference call to discuss fourth quarter and fiscal 2007 operating results is scheduled for today (Monday, February 25) at 9:00 a.m. EST.  Please dial 888-817-4020 (international callers dial 706-679-8762) to participate.  A webcast of the call will take place simultaneously and can be accessed by visiting Lowe’s website at www.Lowes.com/investor and clicking on Lowe’s Fourth Quarter and Fiscal 2007 Earnings Conference Call Webcast.  A replay of the call will be archived on Lowes.com until May 18, 2008.

 Lowe's Business Outlook

First Quarter 2008 (comparisons to first quarter 2007)

·   The company expects to open approximately 21 new stores reflecting square footage growth of approximately 11 percent

·   Total sales are expected to increase approximately 2 percent

·   The company expects comparable store sales to decline 5 to 7 percent

·   Earnings before interest and taxes (EBIT) margin is expected to decline approximately 170 basis points driven by payroll, fixed cost, incentive compensation and depreciation de-leverage

·   Store opening costs are expected to be approximately $17 million

·   Diluted earnings per share of $0.38 to $0.42 are expected

·   Lowe’s first quarter ends on May 2, 2008 with operating results to be publicly released on Monday, May 19, 2008

Fiscal Year 2008 (comparisons to fiscal year 2007)

·   The company expects to open approximately 120 stores in 2008 reflecting total square footage growth of approximately 8 percent

·   Total sales are expected to increase approximately 3 percent

·   The company expects comparable store sales to decline 5 to 6 percent

·   Earnings before interest and taxes (EBIT) margin is expected to decline approximately 180 basis points

·   Store opening costs are expected to be approximately $109 million

·   Diluted earnings per share of $1.50 to $1.58 are expected for the fiscal year ending January 30, 2009

 Disclosure Regarding Forward-Looking Statements

This news release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the “Act”).  Statements of the company’s expectations for sales growth, comparable store sales, earnings and performance, capital expenditures, store openings, the housing market, the home improvement industry, demand for services, and any statement of an assumption underlying any of the foregoing, constitute “forward-looking statements” under the Act.  Although the company believes that the expectations, opinions, projections, and comments reflected in its forward-looking statements are reasonable, it can give no assurance that such statements will prove to be correct. A wide-variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results expressed or implied by our forward-looking statements including, but not limited to, changes in general economic conditions, such as interest rate and currency fluctuations, higher fuel and other energy costs, slower growth in personal income, declining housing turnover, the availability of mortgage financing, inflation or deflation of commodity prices and other factors which can negatively affect our customers, as well as our ability to:  (i) respond to adverse trends in the housing industry and the level of repairs, remodeling, and additions to existing homes, as well as general reduction in commercial building activity; (ii) secure, develop, and otherwise implement new technologies and processes designed to enhance our efficiency and competitiveness; (iii) attract, train, and retain highly-qualified associates; (iv) locate, secure, and successfully develop new sites for store development particularly in major metropolitan markets; (v) respond to fluctuations in the prices and availability of services, supplies, and products; (vi) respond to the growth and impact of competition; (vii) address legal and regulatory developments; and (viii) respond to unanticipated weather conditions that could adversely affect sales.  For more information about these and other risks and uncertainties that we are exposed to, you should read the “Risk Factors” included in our Annual Report on Form 10-K to the United States Securities and Exchange Commission and the description of material changes, if any, in those “Risk Factors”  included in our Quarterly Reports on Form 10-Q.

The forward-looking statements contained in this news release speak only as of the date of this release and the company does not assume any obligation to update any such statements.

With fiscal year 2007sales of $48.3 billion, Lowe’s Companies, Inc. is a FORTUNE® 50 company that serves approximately 14 million customers a week at more than 1,525 home improvement stores in the United States and Canada.  Founded in 1946 and based in Mooresville, N.C., Lowe’s is the second-largest home improvement retailer in the world.  For more information, visit Lowes.com.

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Lowe's Companies, Inc.
Consolidated Statements of Current and Retained Earnings (Unaudited)
In Millions, Except Per Share Data
	Three Months Ended										Years Ended
	February 1, 2008					February 2, 2007					February 1, 2008					February 2, 2007
Current Earnings	Amount			Percent		Amount			Percent		Amount			Percent		Amount			Percent
Net sales	$	10,379			100.00	$	10,406			100.00	$	48,283			100.00	$	46,927			100.00
Cost of sales		6,759			65.12		6,719			64.56		31,556			65.36		30,729			65.48
Gross margin		3,620			34.88		3,687			35.44		16,727			34.64		16,198			34.52
Expenses:
Selling, general and administrative		2,489			23.97		2,335			22.44		10,515			21.78		9,738			20.75
Store opening costs		61			0.59		49			0.47		141			0.29		146			0.31
Depreciation		370			3.57		308			2.97		1,366			2.83		1,162			2.48
Interest - net		47			0.45		43			0.42		194			0.40		154			0.33
Total expenses		2,967			28.58		2,735			26.30		12,216			25.30		11,200			23.87
Pre-tax earnings		653			6.30		952			9.14		4,511			9.34		4,998			10.65
Income tax provision		245			2.37		339			3.25		1,702			3.52		1,893			4.03
Net earnings	$	408			3.93	$	613			5.89	$	2,809			5.82	$	3,105			6.62
Weighted average shares outstanding - basic		1,456					1,519					1,481					1,535
Basic earnings per share	$	0.28				$	0.40				$	1.90				$	2.02
Weighted average shares outstanding - diluted		1,482					1,549					1,510					1,566
Diluted earnings per share	$	0.28				$	0.40				$	1.86				$	1.99
Cash dividends per share	$	0.08				$	0.05				$	0.29				$	0.18
Retained Earnings
Balance at beginning of period	$	15,281				$	14,323				$	14,860				$	12,191
Cumulative effect adjustment 1		-					-					(8	)				-
Net earnings		408					613					2,809					3,105
Cash dividends		(117	)				(76	)				(428	)				(276	)
Share repurchases		(227	)				-					(1,888	)				(160	)
Balance at end of period	$	15,345				$	14,860				$	15,345				$	14,860
1 The Company adopted FIN 48, Accounting for Uncertainty in Income Taxes, effective February 3, 2007.

Lowe's Companies, Inc.
Consolidated Balance Sheets
In Millions, Except Par Value Data
		(Unaudited)
		February 1, 2008		February 2, 2007
Assets
Current assets:
Cash and cash equivalents		$	281	$	364
Short-term investments			249		432
Merchandise inventory - net			7,611		7,144
Deferred income taxes - net			302		161
Other current assets			279		213
Total current assets			8,722		8,314
Property, less accumulated depreciation			21,376		18,971
Long-term investments			509		165
Other assets			313		317
Total assets		$	30,920	$	27,767
Liabilities and shareholders' equity
Current liabilities:
Short-term borrowings		$	1,064	$	23
Current maturities of long-term debt			40		88
Accounts payable			3,713		3,524
Accrued salaries and wages			424		425
Self-insurance liabilities			671		650
Deferred revenue			717		731
Other current liabilities			1,137		1,098
Total current liabilities			7,766		6,539
Long-term debt, excluding current maturities			5,576		4,325
Deferred income taxes - net			712		735
Other liabilities			768		443
Total liabilities			14,822		12,042
Shareholders' equity:
Preferred stock - $5 par value, none issued			-		-
Common stock - $.50 par value;
Shares issued and outstanding
February 1, 2008	1,458
February 2, 2007	1,525		729		762
Capital in excess of par value			16		102
Retained earnings			15,345		14,860
Accumulated other comprehensive income			8		1
Total shareholders' equity			16,098		15,725
Total liabilities and shareholders' equity		$	30,920	$	27,767

Lowe's Companies, Inc.
Consolidated Statements of Cash Flows
In Millions
	Years Ended
		(Unaudited)
		February 1, 2008			February 2, 2007
Cash flows from operating activities:
Net earnings
Adjustments to reconcile net earnings to net cash provided by		$	2,809		$	3,105
operating activities:
Depreciation and amortization			1,464			1,237
Deferred income taxes			(11	)		(6	)
Loss on disposition/writedown of fixed and other assets			51			23
Share-based payment expense			99			62
Changes in operating assets and liabilities:
Merchandise inventory - net			(464	)		(509	)
Other operating assets			(45	)		(135	)
Accounts payable			185			692
Other operating liabilities			259			33
Net cash provided by operating activities			4,347			4,502
Cash flows from investing activities:
Purchases of short-term investments			(920	)		(284	)
Proceeds from sale/maturity of short-term investments			1,183			572
Purchases of long-term investments			(1,588	)		(558	)
Proceeds from sale/maturity of long-term investments			1,162			415
Increase in other long-term assets			(7	)		(16	)
Fixed assets acquired			(4,010	)		(3,916	)
Proceeds from the sale of fixed and other long-term assets			57			72
Net cash used in investing activities			(4,123	)		(3,715	)
Cash flows from financing activities:
Net increase in short-term borrowings			1,041			23
Proceeds from issuance of long-term debt			1,296			989
Repayment of long-term debt			(96	)		(33	)
Proceeds from issuance of common stock under employee stock purchase plan			80			76
Proceeds from issuance of common stock from stock options exercised			69			100
Cash dividend payments			(428	)		(276	)
Repurchase of common stock			(2,275	)		(1,737	)
Excess tax benefits of share-based payments			6			12
Net cash used in financing activities			(307	)		(846	)
Net decrease in cash and cash equivalents			(83	)		(59	)
Cash and cash equivalents, beginning of period			364			423
Cash and cash equivalents, end of period		$	281		$	364