Charlotte, NC, May 25, 2006--Today at its annual meeting of shareholders, Lowe's Chairman, president and CEO Robert A. Niblock said the company remains confident in its outlook for 2006 and beyond and outlined a balanced view of macroeconomic factors key to Lowe's business.
"Most economists expect employment and income growth to remain strong, which we feel will support continued home improvement spending," explained Niblock. "More than 2 million people have joined the workforce in the past year, and the unemployment rate continues to decline, while both average wages and disposable personal income are up year over year. In addition, young adults are buying homes at a faster rate than previous generations, contributing to record levels of home ownership in the U.S."
In 2006, Lowe's will continue to leverage competitive advantages such as its centralized distribution network by moving more products through distribution centers to replenish stores in a more timely manner. The company plans to invest approximately $800 million in its existing stores to ensure they remain best in class. And, Lowe's will continue to expand self check- out, now in more than 150 stores, to an additional 300 locations, to enhance convenience for customers.
"For 60 years, Lowe's has been focusing on the details, putting customers first and caring about our employees," Niblock added. "It's Lowe's culture, and it will continue to drive our success as we embark on our next 60 years."
During the meeting, shareholders re-elected board members Peter C. Browning, Marshall O. Larsen, Stephen F. Page and O. Temple Sloan, Jr. Continuing directors include Leonard L. Berry, Paul Fulton, Dawn E. Hudson, Robert A. Ingram, Robert L. Johnson, Richard K. Lochridge and Niblock.
Shareholders also approved both annual and long-term incentive plans; amended the company's articles of incorporation to set the minimum number of directors at three, changing the voting standard from plurality to a majority of votes cast, and revising directors' indemnity for personal liability; and ratified Deloitte & Touche as the company's independent public accountants for the 2006 fiscal year. Shareholders rejected a shareholder proposal to require a separate annual report addressing progress toward implementation of the company's wood policy.
