Shoppers patronage Lowe’s home-improvement retailer on May 20, 2020 in Farmingdale, New York.
Bruce Bennett | Getty Images
Lowe’s mentioned Wednesday it expects sales to develop by about 22% subsequent yr, as its turnaround efforts gain momentum, and it will get a lift from the popularity of house enchancment initiatives throughout the coronavirus pandemic.
Same-store sales are anticipated to rise by about 23% throughout the identical interval, serving to it to earn between $7.53 to $7.63 per share, the corporate mentioned. After changes, Lowe’s forecast earnings of $8.62 to $8.72 per share.
Lowe’s shares have been up about 5% early Wednesday. So far this yr, the corporate’s shares are up about 26%, bringing its market worth to $116.Eight billion.
Speaking at an investor assembly, Lowe’s CEO Marvin Ellison mentioned the corporate may have a “total home” technique as it expands its assortment of merchandise that householders and residential professionals want, from kitchen home equipment to house decor, and presents a greater buyer expertise.
He highlighted the investments and enhancements that Lowe’s has already made throughout its brick-and-mortar and digital companies. Among them, it is launched a loyalty program to win extra enterprise from house professionals, such as electricians and contractors. It overhauled its web site to make it simpler to navigate and higher ready to deal with site visitors. And it is added new digital success choices, such as curbside pickup and in-store lockers.
“Our commitment to retail fundamentals has been essential to our 2020 financial success,” he mentioned. “Our supply chain, in-store and digital systems would have collapsed under the weight of the unprecedented customer demand created by the pandemic without this focus.”
Yet, he added “the best days at Lowe’s are still in front of us,” as the corporate turns its consideration to gaining share in the roughly $900 billion U.S. house enchancment market.
He mentioned the corporate has come a great distance since Black Friday 2018 when its web site crashed. Now, he mentioned, the retailer is dealing with a surge in e-commerce demand day after day due to the pandemic.
Lowe’s Chief Financial Officer Dave Denton mentioned its efforts in the months forward will carry the corporate’s sales per sq. foot. He mentioned it expects to have $423 per sq. foot by the tip of this yr and it’ll elevate its objective to $460 for the longer term.
“2020 was a pivotal year for the company,” he mentioned. “We are taking market share earlier than we expected and we are making the right investments for future growth.”
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