After an earnings report that was well below what analysts expected, Lowe's explained some of the reasons for the decline, along with some optimism for its future with its Pro Customers.
Lowe's Chairman, CEO, and President, Robert Niblock, explained the company's strategy to invest more heavily in marketing which led to an added expense for the second quarter. It also created a situation where Lowe's needed to change its staffing plans, which also created an unexpected added expense.
But when it comes to the Pro Customer, Lowe's is reporting another successful quarter. Part of the reason is the acquisition of two distributors to help meet demand. “We made further progress to enhance our product and service offering for the pro customer,” Niblock explained. “In addition to Central Wholesalers, last year we further expanded our pro customer reach and share of wallet with the acquisition of Maintenance Supply Headquarters. These acquisitions are significant steps forward in our strategy to deepen and broaden our relationship with new and existing pro customers, enabling us to better serve the multifamily housing industry through expanded products and services.”
That relationship strength also comes from the plumbing and electrical categories. Chief Operating Officer, Rick Damron, reports Lowe's has worked to acquire name brand products and is mixing that with new ways to serve its Pro Customer. “We continue to evolve our capabilities to better connect with the pro across channels and make it simpler for them to do business with Lowe's,” Damron said. “We're seeing the pros engage more in the channels that best fit their unique needs–whether that's online with LowesForPros.com, at the market level with our Account Executive Pro Services or AEPs, at the store level with our dedicated team of specialists, or our growing national pro services team.”
Lowe's reports about 30% of total revenue in the second quarter came from the Pro Customer.
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