Lowe’s Unveils Strategy to Drive Market Share Acceleration at its 2020 Investor Update
Lowe’s Companies, Inc. (“Lowe’s”) is hosting a virtual Investor Update today.
Building on its strong execution of its retail fundamentals strategy, the company will be introducing the Total Home strategy to further accelerate market share gains.
“At Lowe’s we will be committed to offering everything a homeowner needs to provide a “total home solution” across every area in the home. This includes products and services for everything needed to repair and improve the home, for DIY and Pro customers alike, across all décor categories including paint, as well as simple and complex installations,” said Marvin R. Ellison, Lowe’s president and CEO. “Our Total Home strategy will enhance customer engagement and grow market share by intensifying our focus on the Pro customer, expanding our online business, modernizing installation services, improving localization efforts and elevating our product assortment.”
Today’s presentations include the company’s strategies to grow market share, drive productivity and deliver a seamless, omnichannel experience while maximizing sustainable shareholder value creation. Additionally, the company is providing scenario planning detail for its 2021 financial performance to offer increased transparency in this unprecedented operating environment.
“As we drive market share gains and focus on targeted productivity initiatives, we expect to improve operating efficiency and generate robust levels of free cash flow,” commented David M. Denton, Lowe’s executive vice president and CFO. “We are committed to investing in the business, including expanding our supply chain network to enhance our omnichannel capabilities. Through our disciplined capital allocation program, we are allocating cash to enhance returns and drive long-term shareholder value creation.”
Underscoring its commitment to return excess cash to shareholders, the Board of Directors has authorized a new $15 billion common stock repurchase program. This new repurchase program has no expiration date and adds to the previous program’s balance, which was $4.7 billion as of December 8, 2020.
Lowe’s reiterates its outlook for operating results for fourth quarter 2020 as previously released and provides its 2020 full-year outlook that incorporates the fourth quarter expected results.
Lowe’s Business Outlook
Fiscal Year 2020 (comparisons to fiscal year 2019):
– Total sales are expected to increase approximately 22 percent.
– Comparable sales are expected to increase approximately 23 percent.
– Operating income as a percentage of sales (operating margin) is expected to increase 200 basis points.
– Adjusted operating income1 as a percentage of sales (adjusted operating margin1) is expected to increase 170 basis points.
– Effective income tax rate is expected to be approximately 25 percent.
– Diluted earnings per share of $7.53 to $7.63 are expected for the fiscal year ending Jan 29, 2021.
– Adjusted diluted earnings per share1 are expected to be $8.62 to $8.72.
A replay of today’s webcast, including the accompanying presentation, will be archived on ir.lowes.com.
For the full press release, click here.
About Lowe’s Companies
Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving approximately 18 million customers a week in the United States and Canada. With fiscal year 2019 sales of $72.1 billion, Lowe’s and its related businesses operate or service more than 2,200 home improvement and hardware stores and employ approximately 300,000 associates. Based in Mooresville, N.C., Lowe’s supports the communities it serves through programs focused on creating safe, affordable housing and helping to develop the next generation of skilled trade experts. For more information, visit Lowes.com.
Source: Lowe’s Companies, Inc.