Lowe's tops earnings estimates as same-store sales jump 28%, warns that some DIY trends could fade
Even with the strong results, Lowe's continues to expect that sales could moderate as the pandemic eases. In a moderate and weak market, demand would likely drop respectively by 7% to 9% and 10%. Even in a weak market, Denton said, the retailer is poised to improve its operating margins. He said as sales moderate with do-it-yourself customers, they may pick up with home professionals — a smaller part of Lowe's customer base, but one that it's looking to grow. The scenario predicts that Lowe's sales for the year would be around $86 billion — a drop-off from its net sales of approximately $89.6 billion in 2020.cnbc.com
Walgreens taps Starbucks exec Brewer as its new CEO
FILE - Starbucks COO Roz Brewer talks about the proposed redesign of a Starbucks store in New Jersey as she speaks Wednesday, March 20, 2019, during the company's annual shareholders meeting in Seattle. Walgreens has tapped Roz Brewer as its new CEO, which will make her the only Black woman currently leading a Fortune 500 company. Brewer will take over as Walgreens CEO on March 15, 2021 after a little more than three years as Starbucks' chief operating officer. At Starbucks, Brewer revamped stores, taking out clutter and cutting down on administrative work so employees could focus on customers and speed up service. Prior to joining Starbucks, Brewer served as president and CEO of Sam’s Club, the members-only warehouse channel of Walmart Inc. She also grew membership and improved merchandise there.
Lowe's expects sales to rise about 22% in fiscal 2020 as turnaround efforts gain traction
Lowe's said Wednesday it expects sales to grow by about 22% in fiscal 2020, as its turnaround efforts gain momentum, and it gets a boost from the popularity of home improvement projects during the coronavirus pandemic. Same-store sales are expected to rise by about 23% during the same period, helping it to 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. Lowe's Chief Financial Officer Dave Denton said its efforts in the months ahead will lift the company's sales per square foot. Correction: Lowe's said it expects sales to grow by about 22% in fiscal 2020.cnbc.com
Brands weigh in on national protests over police brutality
Black lives matter. At the same time, companies must consider whether it makes sense for them to weigh in, especially on an issue as sensitive as race. Media giant ViacomCBS tweeted Black Lives Matter. Expressing solidarity with the Black Lives Movement is the right message, but everyone is jumping in on that bandwagon, said Allen Adamson, co-founder and managing partner of Metaforce a marketing and product consultancy. Each of these black lives matter.
Lowe's funds $25 million in grants to help minority businesses reopen; CEO challenges other executives to 'do our part'
Lowe's announced Wednesday that it would assist minority-owned businesses with $25 million in grants to support efforts to relaunch the American economy. Lowe's is dishing out the funds to help small businesses, especially home improvement professionals, in need of masks, personal protective equipment and other supplies to operate safely. The new funds follow $340 million of support the home improvement retailer provided for Covid-19 response activities in the first quarter. "These are going to be minority businesses and other businesses that are now starting to reopen," CEO Marvin Ellison told CNBC's Jim Cramer in a "Mad Money" interview. "To all my fellow CEOs out there running large companies: Let's do our part to help the small businesses get back up and going," Ellison said.cnbc.com
Lowe's fourth-quarter sales, outlook for fiscal 2020 fall short of estimates
Lowe's on Wednesday reported mixed fourth-quarter results, with sales weaker than expected, and provided a disappointing forecast. Excluding items, the company earned 94 cents per share, outpacing analyst estimates of 91 cents per share from Refinitiv. Revenue rose to $16.03 billion from $15.65 billion a year ago but was less than the $16.15 billion analysts had forecasted. Lowe's reported earnings a day after rival Home Depot reported a fourth quarter that beat analysts' estimates. Lowe's said it expects to have sales growth of 2.5% to 3% and same-store sales growth of 3% to 3.5% in fiscal 2020.cnbc.com
Lowe's says redesigned website will help it catch up, fend off rivals such as Home Depot
With the new website, customers will be able to check out with one click. "We have [website] traffic, but because functionality isn't great, you may not get the whole way to checkout," he said. Lowe's shares were down more than 4% on Wednesday, while Home Depot shares edged up less than 1%. Home Depot shares, which have a market cap of $259 billion, have gained more than 26% over the past year. Lowe's shares are valued at $87 billion, and are up about 9% over the same period.cnbc.com
Lowe's is laying off thousands of workers
Lowe's is laying off thousands of workers. It said that workers whose jobs are being eliminated will be given transition pay and have the opportunity to apply for open roles at Lowe's. Lowe's operates more than 1,700 stores in the United States. Previously, Lowe's closed 20 US stores, exited its Mexico business and shut down its 99 Orchard Supply Hardware stores in the United States. Unlike many department stores and mall-based retailers, Lowe's, Home Depot and home improvement retailers have not made mass store closures.