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News Release

Lowe's Announces Growth Strategies at 2010 Analyst and Investor Conference
-- Company Reiterates Guidance for Fiscal 2010 --

CHARLOTTE, N.C., Nov 30, 2010 (BUSINESS WIRE) --

Lowe's Companies, Inc. (NYSE: LOW) will discuss its strategies for managing the business in today's challenging environment and longer-term opportunities to drive performance when the company meets with analysts and investors today in Mooresville, North Carolina at its annual conference.

Today, Lowe's reiterated its prior sales and earnings guidance for the 2010 fiscal year, which was provided in its November 15, 2010 earnings release. Sales and earnings guidance can be found in the Business Outlook section of this release.

"Over the past few years, we have faced an uncertain housing environment, an uncertain consumer and a declining industry. Over the same period, we have also seen customer expectations intensify," commented Robert A. Niblock, Lowe's chairman and CEO. "To be successful in the future, we must find ways to deliver better experiences, and that requires an enhanced promise to customers about what Lowe's can provide as a home improvement company. It also requires that we execute better than any other company on that promise.

"In no way are we stepping away from the retail operations that are the foundation of our success, but we recognize that the store experience alone is not enough for customers today," Niblock concluded.

During the conference, Lowe's executives will focus on the experiences that consumers desire in their home improvement activities and key initiatives that will improve the company's retail capabilities and execution. Highlights of those presentations include:

  • Gregory M. Bridgeford, executive vice president of business development: "We will not be satisfied in simply holding our position as a big box home improvement retailer. We intend to define our future, and that future is focused on serving the evolving needs of consumers in ways that we understand and can address better than anyone in home improvement."
  • Larry D. Stone, president and chief operating officer: "We have reached another point in our lifecycle where we must adapt to maintain our growth in the home improvement business. Our entire organization is focused on making the promise of a better, more seamless customer experience a reality."
  • Robert F. Hull, Jr., executive vice president and CFO: "Our future prosperity is not tied to a robust recovery in housing or the home improvement market. We are focused on making our operating model more efficient to grow profits faster than sales, and we are leveraging productivity measures to ensure that we grow sales faster than assets. We are focused on transforming our business and driving return on invested capital."

Lowe's Business Outlook

Fiscal Year 2010 (comparisons to fiscal year 2009)

  • The company expects to open approximately 42 stores in 2010 reflecting total square footage growth of approximately 2 percent
  • Total sales are expected to increase 3 to 4 percent
  • The company expects comparable store sales to increase 1 to 2 percent
  • Earnings before interest and taxes as a percentage of sales (operating margin) is expected to increase 50 to 60 basis points
  • Depreciation expense is expected to be approximately $1.60 billion
  • Diluted earnings per share of $1.37 to $1.40 are expected for the fiscal year ending January 28, 2011

A webcast of this conference is scheduled for today (Tuesday, November 30) at 10:00 am ET. The webcast can be accessed by visiting Lowe's website at www.Lowes.com/investor and clicking on Lowe's 2010 Analyst & Investor Conference Webcast. A replay of the webcast will be available online shortly following the event and available until the 2011 Analyst and Investor Conference.

Disclosure Regarding Forward-Looking Statements

This news release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Statements of the company's expectations for sales growth, comparable store sales, earnings and performance, capital expenditures, store openings, the housing market, the home improvement industry, demand for services, share repurchases and any statement of an assumption underlying any of the foregoing, constitute "forward-looking statements" under the Act. Although the company believes that the expectations, opinions, projections, and comments reflected in its forward-looking statements are reasonable, it can give no assurance that such statements will prove to be correct. A wide variety of potential risks, uncertainties, and other factors could materially affect our ability to achieve the results expressed or implied by our forward-looking statements including, but not limited to, changes in general economic conditions, such as continued high rates of unemployment, interest rate and currency fluctuations, higher fuel and other energy costs, slower growth in personal income, changes in consumer spending, changes in the rate of housing turnover, the availability and increasing regulation of consumer credit and of mortgage financing, inflation or deflation of commodity prices and other factors which can negatively affect our customers, as well as our ability to: (i) respond to adverse trends in the housing industry, such as the psychological effects of falling home prices, and in the level of repairs, remodeling, and additions to existing homes, as well as a general reduction in commercial building activity; (ii) secure, develop, and otherwise implement new technologies and processes designed to enhance our efficiency and competitiveness; (iii) attract, train, and retain highly-qualified associates; (iv) locate, secure, and successfully develop new sites for store development particularly in major metropolitan markets; (v) respond to fluctuations in the prices and availability of services, supplies, and products; (vi) respond to the growth and impact of competition; (vii) address changes in existing or new laws or regulations that affect consumer credit, employment/labor, trade, product safety, transportation/logistics, energy costs, health care, tax or environmental issues; and (viii) respond to unanticipated weather conditions that could adversely affect sales. In addition, we could experience additional impairment losses if the actual results of our operating stores are not consistent with the assumptions and judgments we have made in estimating future cash flows and determining asset fair values. For more information about these and other risks and uncertainties that we are exposed to, you should read the "Risk Factors" and "Critical Accounting Policies and Estimates" included in our Annual Report on Form 10-K to the United States Securities and Exchange Commission (the "SEC") and the description of material changes, if any, therein included in our Quarterly Reports on Form 10-Q.

The forward-looking statements contained in this news release are based upon data available as of the date of this release or other specified date and speak only as of such date. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf about any of the matters covered in this release are qualified by these cautionary statements and in the "Risk Factors" included in our Annual Report on Form 10-K to the SEC and the description of material changes, if any, therein included in our Quarterly Reports on Form 10-Q. We expressly disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, change in circumstances, future events, or otherwise.

With fiscal year 2009 sales of $47.2 billion, Lowe's Companies, Inc. is a FORTUNE(R) 50 company that serves approximately 15 million customers a week at more than 1,725 home improvement stores in the United States, Canada and Mexico. Founded in 1946 and based in Mooresville, N.C., Lowe's is the second-largest home improvement retailer in the world. For more information, visit Lowes.com.

SOURCE: Lowe's Companies, Inc.

Lowe's Companies, Inc.
Shareholders'/Analysts' Inquiries:
Tiffany Mason, 704-758-2033
or
Media Inquiries:
Chris Ahearn, 704-758-2304