Lowe's CEO: Our transformation is gaining momentum
Lowe’s CEO Robert Niblock cited the recovering U.S. economy as among the reasons why the company plans to focus more on market differentiation and omnichannel retailing.
The company said it will outline these and other strategic priorities in a meeting with investors on Dec. 11 in North Carolina.
"We're at a great point in our company's evolution. The housing market and broader economy are recovering just as our transformation is gaining momentum," Niblock said. "We're building on our past success and finding new ways to serve and connect with customers."
Although the company shared few specifics, the company announced that it plans to increase its focus on:
• Enhancing its relevance to customers through omnichannel retailing
• Differentiating itself through better customer experiences
• Adapting to a changing home improvement landscape
• And delivering long-term profitable growth and substantial returns for shareholders
"We continue to generate solid cash flow and have exciting opportunities ahead of us," said Robert F. Hull, Jr., Lowe's CFO. "Return on invested capital is expected to reach approximately 19 percent by 2017, an increase of almost 500 basis points over the next three years."
Lowe's also reiterated its sales and earnings guidance for the 2014 fiscal year:
• Total sales are expected to increase 4.5% to 5%.
• Same store sales are expected to increase 3.5% to 4%.
• The company expects to open six home improvement and four hardware stores.
• Diluted earnings per share of approximately $2.68 are expected for the fiscal year ending Jan. 30.
• Lowe's currently operates more than 1,835 home improvement and hardware stores and has more than 260,000 employees.
Source: Retailing Today