Lansdowne, VA, September 25, 2006--Lowe's will discuss how the company's culture of customer service and its key initiatives position it for continued growth when Lowe's meets with analysts and investors tomorrow in Lansdowne, Va. at its annual conference.
In an update to the company's business outlook, Lowe's indicated current sales are trending below its prior expectations, but the company anticipates delivering diluted earnings per share at or near the low end of its prior guidance range of $2.00 to $2.07.
"We remain focused on strategies to drive market share, however near term pressures on the U.S. consumer have led to a more cautious outlook for the second half of the year," commented Robert A. Niblock, Lowe's chairman, president and CEO. "Despite the backdrop of declining housing turnover, elevated energy costs and difficult comparisons resulting from active 2004 and 2005 hurricane seasons, I'm confident we have the plans and people in place to ensure we continue to meet the needs of consumers and gain market share.
"Opportunities for Lowe's lie in our ability to prudently manage expenses while continuing to provide the best products, everyday low prices and knowledgeable service in a compelling shopping environment," Niblock added.
Robert F. Hull, Jr., executive vice president and CFO, will provide an outlook for fiscal years 2007 and 2008 and share Lowe's future store growth plans.
"Our continued investment in the business, balanced with diligent expense management, positions Lowe's for continued profitable growth," said Hull. "We plan to add approximately 155 and 150 stores in 2007 and 2008, respectively, equating to approximately 11 percent square footage growth in 2007 and 10 percent in 2008. We expect this square footage growth to drive annual sales increases of 10 to 13 percent in fiscal 2007 and approximately 11 to 13 percent in 2008. This planned sales growth is expected to drive diluted earnings per share growth of 10 to 14 percent for 2007 and a 12 to 16 percent increase in 2008."
During the conference, Lowe's executives will focus on key programs and initiatives to improve operations, continually enhance customer service and increase market share. Highlights of those presentations include:
- Larry D. Stone, senior executive vice president of merchandising/marketing:
"During the past year, we implemented programs to more efficiently merchandise our products and make our stores more customer friendly and easier to shop. With our inviting stores and compelling merchandise, we are confident we will continue to gain market share in each of our 20 product categories. Additionally, our marketing programs continue to resonate with customers and build the Lowe's brand."
- Charles W. (Nick) Canter, executive vice president of store operations: "Knowledgeable associates consistently delivering exceptional customer service is critical to our continued success. Our Customer Focused Program, in place since 1999, rewards great service and has helped us enhance our culture of customer service. We are building on our solid foundation of great employees and compelling merchandising to capture market share."
- K. Scott Plemmons, senior vice president of specialty sales: "Our specialty sales initiatives remain an important part of our growth strategy and drivers of our business. Our new specialty sales organization is designed to meet the evolving needs of customers and help our stores maximize sales. By working to improve our Installed Sales, Special Order, e-commerce and Commercial Business Customer programs, and we are continuing to strengthen our relationship with customers."
- Joseph M. (Mike) Mabry Jr., executive vice president of logistics and distribution: "Our industry-leading logistics and distribution infrastructure is focuse
