Customers support Lowes Hardware Store in Farmingdale, New York on May 20, 2020.
Bruce Bennett | Getty Images
Lowe’s said Wednesday that it expects sales to grow about 22% over the next year as its turnaround efforts gain momentum and the popularity of home improvement projects receives a boost during the coronavirus pandemic.
Revenue in the same store is expected to grow about 23% over the same period, helping the company earn between $ 7.53 and $ 7.63 per share. After adjustments, Lowe projects earnings of $ 8.62 to $ 8.72 per share.
Speaking at an investor meeting, Lowe CEO Marvin Ellison said the company will pursue a “total home” strategy as it expands its strategy A selection of products that homeowners and home professionals need, from kitchen appliances to home decor, and provide a better customer experience.
He highlighted the investments and improvements Lowe’s already made in brick and mortar and digital businesses. A loyalty program was launched among them to attract more business from home professionals such as electricians and building contractors. The website has been redesigned to simplify navigation and better handle data traffic. In addition, new digital fulfillment options have been added, such as: B. Roadside pickup and in-store lockers.
“Our commitment to retail fundamentals was critical to our financial success in 2020,” he said. “Our supply chain, in-store and digital systems would have collapsed under the weight of the unprecedented customer demand created by the pandemic without that focus.”
Still, he added, “The best days at Lowe are ahead of us,” as the company turns its attention to entering the home improvement market, valued at approximately $ 900 billion.
Dave Denton, Lowe’s chief financial officer, said his efforts over the coming months would increase the company’s revenue per square foot. He said it expects to reach $ 423 per square foot by the end of this year and will increase its target to $ 460 for the future.
“2020 was a pivotal year for the company,” he said. “We are taking market share earlier than expected and making the right investments for future growth.”
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