Lowe’s, in hosting a virtual investor update, has unveiled a new strategy to grow market share. 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 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.”
The investor presentations included 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 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,” said David Denton, Lowe’s evp/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 reiterated its outlook for operating results for fourth quarter 2020 as previously released and provided its 2020 full-year outlook that incorporates the fourth quarter expected results. For fiscal year 2020, total sales are expected to increase approximately 22% and comparable sales are expected to increase approximately 23%. Diluted earnings per share of $7.53 to $7.63 are expected for the fiscal year ending January 29, 2021.