Charlotte, NC, May 27--At its annual meeting of shareholders today, Lowe's Companies, Inc. outlined key initiatives that are driving continuous improvement in the company's business.
"With record sales, industry-leading comps, and 160,000 employees focused on delivering superior customer service, Lowe's delivered an outstanding year in 2004," said Lowe's chairman, president and CEO Robert A. Niblock.
Niblock outlined three strategies upon which the company is concentrating to deliver strong performance in 2005 and beyond:
-- Better leveraging of Lowe's operating platform through its Rapid Response Replenishment (R3) initiative designed to move more product more quickly to more customers, while lowering inventory investment, as well as the use of technology to better manage or automate tasks employees must accomplish in-store, freeing them to spend more time assisting customers.
-- Driving growth and market penetration by adding stores in both metropolitan and small markets, and tailoring those stores to address the needs of an increasingly diverse customer base with the right product offerings, signage and product packaging that is friendly to all customers. In addition, Installed and Special Order Sales programs continue to enable Lowe's to increase sales by making shopping easy for both homeowners and commercial business customers (CBC).
-- Differentiating the company by offering quality products consumers trust, plus new, innovative products exclusive to Lowe's, in a superior shopping environment and continuing to deliver great value for customers.
Lowe's is also reaching new milestones in 2005. In the first quarter, the company achieved $1 billion in sales during a single week for the first time in its history.
"The success Lowe's experienced in 2004 was the continuation of a decade-long trend of profitable growth," explained Robert F. Hull, executive vice president and CFO. "Our relentless pursuit of perfection and continued investment in our business has allowed Lowe's to grow annual sales by 19 percent and earnings by 26 percent over the past ten years. And, despite unseasonable weather in March, 2005 is off to a strong start."
During the meeting, shareholders elected board members Robert A. Ingram, Robert L. Johnson, and Richard K. Lochridge to three-year terms. Continuing directors include Peter C. Browning, Marshall O. Larsen, Stephen F. Page, O. Temple Sloan, Jr., Leonard L. Berry, Paul Fulton, Dawn E. Hudson and Niblock. Claudine B. Malone president and CEO of Financial & Management Consulting, Inc., and a Lowe's director since 1995, did not stand for re- election this year.
"Claudine served during a time of tremendous growth and success," Niblock said. "On behalf of the entire board, I'd like to thank her for her outstanding service to Lowe's and our shareholders over the past ten years."
Shareholders approved an amendment to the directors' stock option plan. The plan now permits the board of directors to grant deferred stock units representing shares of Lowe's common stock. At each award date, the board of directors must elect to grant either deferred stock units or options to purchase shares of Lowe's common stock under the plan. Until the board of directors decides otherwise, the board of directors intends to grant only deferred stock units. Shareholders also ratified Deloitte and Touche LLP as independent auditors for the 2004 fiscal year.
Today, the board of directors declared a quarterly cash dividend of six cents ($0.06) per share, an increase of 50 percent, payable on July 29, 2005 to shareholders of record as of July 15, 2005. Lowe's has paid a cash dividend each quarter since going public in 1961.
