Chicago, IL, September 27, 2005 -- Lowe's will discuss how the company's strong customer service culture and focused execution of its key strategic initiatives is providing a bright outlook for the future when Lowe's meets with analysts and investors tomorrow in Chicago at its annual conference.
In an update to current sales and earnings trends, the company will indicate it remains comfortable with its previous guidance of 4 to 6 percent comparable store sales growth and earnings per share of $0.76 to $0.78 for the third quarter of 2005, and approximately 5 percent comparable store sales growth and earnings per share of $3.31 to $3.37 for the fiscal year.
"Opportunities for Lowe's lie in our ability to continuously enhance our stores, our product and service offering, and most importantly the service required to meet the needs of our customers," commented Robert A. Niblock, Lowe's chairman, president and CEO. "Our disciplined approach to utilizing consumer research has allowed us to design what we believe is the best shopping experience in the industry, and will be the cornerstone of our ability to identify evolving consumer trends and preferences in the future," continued Niblock.
Robert F. Hull, Jr., executive vice president and CFO, will provide an outlook for fiscal years 2006 and 2007 and share Lowe's future store growth plans.
"We are well positioned to leverage our asset base to continue our profitable growth," said Hull. "We plan to add 150 stores in 2005 and 150 to 160 new stores per year in fiscal 2006 and 2007, equating to approximately 12 percent square footage growth in 2006 and 10 to 11 percent in 2007. We expect this square footage growth to drive a sales increase of 13 to 14 percent for the 52-week period comprising fiscal 2006 versus the 53-week period of fiscal 2005 and an additional 14 to 15 percent increase in 2007. This planned sales growth, when combined with operating margin improvement is expected to drive diluted earnings per share growth of 17 to 20 percent for fiscal 2006 and 16 to 20 percent increase in 2007."
Lowe's executives will focus on key programs and initiatives to improve operations, increase market share and continually enhance customer service. Highlights of those presentations include:
Maureen K. Ausura, senior vice president of human resources:
"Our employees are the foundation of our continued success. At Lowe's the key priorities of human resources are to recruit, motivate, develop and retain outstanding employees. As one of the largest private employers in the country, we are working every day to make Lowe's a great place to work with engaged employees committed to customer service."
Steven M. Stone, senior vice president and chief information officer:
"Lowe's information technology is continuing to build the in frastructure the company needs to drive sales well into the future. We are investing in technology to support our objectives of simplifying and streamlining the store process and enhancing the customer experience."
Larry D. Stone, senior executive vice president of merchandising/marketing:
"Our merchandising organization will continue to emphasize innovation, great value and everyday low prices showcased in inviting stores with great customer service to drive traffic and average ticket. Our marketing message continues to resonate with consumers by highlighting how even a small project can enhance the enjoyment of their homes. I'm convinced that with a continued focus on what matters most, our customers, we will continue to deliver solid results, while building the Lowe's brand."
