MOORESVILLE, N.C. — Lowe’s Companies, Inc. is providing an update on its key growth and productivity initiatives and near-term and long-term financial targets. A live video webcast is available on ir.lowes.com.
“As we look ahead to the expected recovery in home improvement, we are making investments to position the company for long-term growth. We are evolving our Total Home strategy to help solve our customers’ total home improvement needs with more value and exceptional service,” said Marvin R. Ellison, Lowe’s chairman, president and CEO. “By leveraging leading technology solutions, we’re creating a best-in-class omnichannel shopping experience for all generations of homeowners. At the same time, we’re building on our momentum with Pros now that we’ve reached 30% Pro penetration.”
Lowe’s 2025 Total Home Strategy spans five growth initiatives:
- Drive Pro Penetration
- Accelerate Online Sales
- Expand Home Services
- Create a Loyalty Ecosystem
- Increase Space Productivity
To support these Total Home initiatives, the company is announcing:
New AI Framework to Enhance Customer Experience and Drive Productivity
The company has developed a framework to harness the new power of generative AI through a standardized development process, designed to enhance the customer experience and unlock productivity. With a robust AI platform, the company has the agility needed to create innovative solutions alongside many of the leading tech platforms, including NVIDIA, OpenAI and Palantir.
Leveraging the experience gained from its success with early AI models that power its online search and product recommendations, sourcing engines and demand planning tools, the company is now piloting new solutions to empower frontline associates to better serve customers and improve the in-store shopping experience.
Launches First Product Marketplace in U.S. Home Improvement Industry
The company expanded its online assortment with the initial launch of the first product marketplace in the U.S. Home Improvement industry. It is working with both new sellers and existing suppliers to offer their full product catalogs, including products across price points to better serve both value-oriented and more affluent consumers. This allows the company to offer a wider selection of products without carrying the inventory, managing pricing, or investing in new online fulfillment centers. The new marketplace will further position Lowe’s as a one-stop shop where customers can get everything they need for their homes.
Relaunches Pro Loyalty Program as MyLowe’s Pro Rewards
In early 2025, the company is relaunching its Pro loyalty program as MyLowe’s Pro Rewards, designed specifically for the small-to-medium Pro. The new program will be more intuitive to use, making it easier and faster for Pros to earn rewards and redeem them. Additionally, Pro customers who shop with their MyLowe’s Pro Rewards Credit Card will save 5% every day on eligible purchases.
The company is bringing its DIY and Pro loyalty programs into one ecosystem, under a single currency, to create a simple yet compelling value proposition for these different customers. Whether it’s a Pro customer who shops multiple times per week or a homeowner who shops a handful of times per year, they’ll be confident that Lowe’s is making it easy for them to save time and money.
Launches Pro Extended Aisle to Expand Jobsite Delivery
Through a direct interface with supplier systems, the company is creating a seamless solution for large, special Pro orders. Lowe’s sales associates will have instant access to an expanded digital catalog, including inventory availability, pricing and supplier services like jobsite and rooftop delivery. With this expedited quoting process, the company expects to improve its close rate on larger orders, capturing more planned Pro spend, while relying on large suppliers to execute job site delivery.
New Store Growth
To fuel long-term growth, expand its footprint and attract new DIY and Pro customers to the brand, Lowe’s plans to open 10-15 stores per year over the next several years in fast-growing markets in the U.S. In planning this next phase of store expansion, the company will build on the success of its recent new store openings, while also leveraging its enhanced space productivity initiatives. With these new stores, the company expects to strengthen its brand position, build its customer base and drive incremental sales and return on invested capital.
Extends Rural Offering to 150 More Stores, Bringing Rural Store Count to Nearly 500
To better serve customers living in rural communities, Lowe’s is planning to extend its rural assortments to 150 more stores, bringing everything needed for farm and home under one roof. Within a convenient shopping experience, customers can expect to find more options in categories such as pet, workwear, automotive supplies and utility vehicles. Given the challenges rural customers often face driving long distances to shop, Lowe’s is offering greater convenience with these expanded assortments coupled with a full array of home improvement products.
Financial update
The company is providing scenario planning details for its 2025 financial performance to offer increased transparency in a macroeconomic environment that remains uncertain. It will also outline the next set of enterprise-wide Perpetual Productivity Improvement or PPI initiatives, which are expected to generate approximately $1 billion in annual cost savings.
The company remains committed to its best-in-class capital allocation strategy, centered around investing in its strategic growth imperatives, enhancing returns and delivering sustainable shareholder value.
Lowe’s Business Outlook
The company is affirming its outlook for full year 2024.
Adjusted operating income, adjusted operating margin, adjusted effective income tax rate and adjusted diluted EPS are non-GAAP financial measures that exclude the gains associated with the 2022 sale of the Canadian retail business, recorded in the second and third quarter. The company does not provide a reconciliation for non-GAAP estimates on a forward-looking basis where it is unable to provide a meaningful or accurate calculation or estimation of reconciling items (which may be significant) without unreasonable effort, including timing of adjustments associated with the sale of the Canadian retail business.
Full Year 2024 Outlook
- Total sales of $83.0 to $83.5 billion
- Comparable sales expected to be down -3.0% to -3.5% as compared to prior year
- Adjusted operating income as a percentage of sales (adjusted operating margin) of 12.3% to 12.4%
- Net interest expense of approximately $1.3 billion
- Adjusted effective income tax rate of approximately 24.5%
- Adjusted diluted earnings per share of approximately $11.80 to $11.90
- Capital expenditures of approximately $2 billion