Technology improvements, merchandise excellence, a seamless, omnichannel experience, and a $10 billion stock repurchase plan are priorities as Lowe's heads into the new year.
The Mooresville, N.C-based company discussed these topics in detail on Wednesday during its analyst and investor conference.
“We have substantially completed a detailed reassessment of our business and are diligently implementing process and technology improvements that are rooted in the fundamentals of retail and designed to position Lowe’s to win in today’s complex retail environment,” said Marvin R. Ellison, Lowe’s president and CEO, in a prepared statement. “These transformational changes will take time but will enable Lowe’s associates to better focus on serving customers and capture significant market opportunities. As we work to position the company for the future, we will remain true to our mission of delivering the right home improvement products, with the best service and value, across every channel and community we serve.”
CFO David Denton added that the company is committed to both investing in the business and returning excess cash to shareholders. The $10 billion buyback is in addition to a previously announced $4.5 billion repurchase plan. After the announcement, the company’s stock price began to climb moderately.
“While our top priority remains building a sustainable foundation for long-term success, with our strategic reassessment substantially complete, we are committed to delivering on our near-term financial objectives,” Denton added. “We are pleased with our performance quarter-to-date, and we expect to achieve our Business Outlook.”
In the current fiscal year, total sales are expected to increase about 4%. Comp-store sales are expected to increase 2.5%. Lowe’s plans to add a total of eight new stores on the year.