The reconstitution of the Lowe’s Cos. continues under recently appointed chairman and CEO Marvin Ellison as the company announced it would close 51 underperforming stores in the United States and Canada.
The company will close 20 U.S. stores, the majority of which are located within 10 miles of another Lowe’s location, the company stated. The remaining 31 closures will occur in Canada.
Lowe’s officials said they expect to shutter the impacted stores by the end of the fiscal year in February 2019. The company intends to conduct store closing sales for most of the impacted operations except for select U.S. locations, which will shutter immediately. Lowe’s is working with Hilco Merchant Services to help manage the store closing process in the U.S.
Lowe’s pointed out that the financial impact of the store closing process should hit the bottom line to the tune of 28 cents to 34 cents per diluted share. It did not include the estimated impact in the business outlook provided for fiscal 2018 provided on August 22 in conjunction with the company’s second-quarter earnings. Lowe’s added that it would provide additional details about the effect of the store closings in the next quarterly earnings release slated for November 20.
“While decisions that impact our associates are never easy, the store closures are a necessary step in our strategic reassessment as we focus on building a stronger business,” Ellison said in announcing the move. “We believe our people are the foundation of our business and essential to our future growth, and we are making every effort to transition impacted associates to nearby Lowe’s stores.”