Lowe’s: Deeper Penetration into Pro Market Top Goal in 2023

Industry News,

Originally Published by: HBS Dealer — December 7, 2022
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Lowe’s, at its 2022 Analyst and Investor conference in New York City, provided an update on its key growth initiatives and long-term financial targets.

Marvin Ellison, chairman, president and CEO of Lowe’s, talks about the five keys to future growth at the retailer.

“We are building on our momentum with the next chapter of our Total Home strategy, designed to enhance our omnichannel capabilities and position Lowe’s as a one-stop shop for DIY and Pro customers to get everything they need across all of their projects,” said Marvin R. Ellison, chairman, president and CEO of Lowe’s.

Plans for growth across its five focus areas are as follows:

  1. Deepening Pro penetration.
  2. Accelerating its online business.
  3. Expanding installation services.
  4. Driving localization.
  5. Elevating its product assortment.

“We remain committed to our best-in-class capital allocation strategy, centered around investing in our strategic growth imperatives, enhancing returns and delivering long-term shareholder value,” said Ellison.

The company also gave a full year 2022 outlook in a 53-week year comparison to full year 2021, a 52-week year:

Total sales are expected to be approximately $97 to $98 billion, which includes the 53rd week expected increases of $1.0 to $1.5 billion.

Comparable sales are expected to be flat to down 1% compared to prior year.

Gross margin rate is expected to be up slightly compared to prior year.

Lowe’s affirmed its full year 2022 financial outlook, and said, “all adjusted measures exclude asset impairment and expected transaction costs associated with the sale of our Canadian retail business, which is expected to close in early 2023.”

The Canadian retail business represents less than 6% of consolidated full year 2022 sales outlook, said the retailer.