Lowe’s Continues Turnaround Efforts and Reiterates Fiscal 2020 Forecast

Home improvement company Lowe’s has been leading a turnaround effort under CEO Marvin Ellison who recently said the company’s focus will now be on capturing market share from home improvement rivals.

Ellison said at an investor conference that “the best days at Lowe’s are still in front of us.” Lowes reiterated its outlook at the investor conference, saying it expects sales to grow by about 22% this year.

Lowe’s expects sales to grow by about 22% this year. Same-store sales are expected to rise by about 23% during the same period which would help it earn between $7.53 to $7.63 per share, the company said. After adjustments, Lowe’s forecast earnings of $8.62 to $8.72 per share in fiscal 2020.

The company didn’t provide an outlook for fiscal 2021.

Ellison said Lowe’s has overhauled its website and added new signs to help customers navigate its stores. The company will now focus on strategic moves to win more of the approximately $900 billion U.S. home improvement market.

“Our commitment to retail fundamentals has been essential to our 2020 financial success,” said the CEO. “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.”

The company’s Chief Financial Officer Dave Denton said its efforts in the months ahead will lift the company’s sales per square foot. According to Denton, Lowe’s expects to have $423 per square foot by the end of this year and it will raise its goal to $460 for the future.

“2020 was a pivotal year for the company,” he said. “We are taking market share earlier than we expected and we are making the right investments for future growth.”

Lowe’s shares closed Wednesday up nearly 6% to $160.13. Shares have gained about 33% so far in 2020.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.