Charlotte, NC, Sept. 24--Lowe's Companies, Inc. will tell analysts and investors today in Charlotte at its annual conference that third quarter sales trends remain strong and the company remains optimistic about its current and future prospects.
Third quarter comparable store sales are running ahead of previous expectations for a 5 to 6 percent increase for the quarter. Based on the solid sales performance in the quarter, Lowe's now expects earnings per share of $0.52 to $0.53 for the third quarter of 2003 and $2.27 to $2.28 for the fiscal year.
"The success Lowe's is enjoying today is a result of a variety of internal initiatives coming together at once," said Robert L. Tillman, Lowe's chairman and CEO. "Our customers tell us we have the best store environment and merchandising in the industry; our integrated logistics infrastructure allows us to get the right products to our stores more efficiently; our growth strategy is solid as our new metro market stores continue to exceed our expectations and lead the company in sales growth; and finally, our motivated employees continue to provide outstanding customer service day-in-and-day-out.
"These factors, coupled with an improving economy and the American consumers' continued commitment to invest in their homes, make us confident that Lowe's is poised for success well into the future," added Tillman.
President Robert A. Niblock will discuss Lowe's "customers first" culture and key merchandising and store operations initiatives.
"Our stores are focused on providing our customers exceptional service and ensuring Lowe's is the first choice in home improvement in every market we serve," commented Niblock. "Supported by a logistics and distribution backbone unmatched in our industry, our merchants are ensuring our stores remain fresh and merchandising sets compelling to our customers."
In providing guidance for fiscal years 2004 and 2005, Robert F. Hull, Jr., senior vice president and CFO, will indicate Lowe's fundamentals are strong and the company's future outlook remains bright.
"We plan to add 140 and 150 new stores in fiscal 2004 and 2005, respectively, equating to approximately 13 to 15 percent square footage growth per year," said Hull. "This square footage growth should drive annual sales increases of approximately 17 percent for fiscal 2004 and 2005. Including the effect of the adoption of Emerging Issues Task Force (EITF) 02-16, 'Accounting by a Customer (Including a Reseller) for Certain Consideration Received from a Vendor,' diluted earnings per share are expected to increase 14 to 15 percent in 2004 and 25 to 26 percent in 2005. Without the impact of EITF 02-16, we expect earnings growth of approximately 19 to 20 percent for fiscal 2004 and 2005."
