At its 2022 Analyst and Investor Conference, Lowe’s Cos. is providing an update on its key growth initiatives including the company’s plans for growth across its five focus areas.
The growth initiatives include deepening Pro penetration, accelerating the online business, expanding installation services, driving localization and elevating product assortment, the company noted.
Based on the company’s confidence in continued momentum and strong cash generation capabilities, Lowe’s stated, the board of directors has authorized a new $15 billion common stock repurchase program with no expiration date. The new authorization adds to the previous program’s balance, which was $6.4 billion as of December 6.
Lowe’s also announced financial targets for fiscal 2022, with a total sales goal of $97 to $98 billion, including a 53rd week. Sales for the company’s fiscal 2021, which ended January 28, 2002, were $96.25 billion.
In addition, Lowe’s stated that it expects:
- 53rd week to increase total sales by $1 to $1.5 billion
- Comparable sales to come in flat to down 1% as compared to the prior year
- Gross margin rate to be up slightly compared to the previous year
- Depreciation and amortization of $1.75 billion
- Adjusted operating income as a percentage of sales, or adjusted operating margin, of 13%
- Interest expense of $1.1 to $1.2 billion
- Adjusted effective income tax rate of 25%
- Adjusted diluted earnings per share of $13.65 to $13.80
- Total share repurchases of $13 billion
- Adjusted ROIC of over 37%
- Capital expenditures of up to $2 billion
Adjusted measures exclude asset impairment and expected transaction costs associated with the sale of Lowe’s Canadian retail business, which the company anticipates closing in early 2023.
“We are building on our momentum with the next chapter of our Total Home strategy, designed to enhance our omnichannel capabilities and position Lowe’s as a one-stop shop for DIY and Pro customers to get everything they need across all of their projects,” said Marvin Ellison, Lowe’s chairman, president and CEO, in announcing the outlook. “We remain committed to our best-in-class capital allocation strategy, centered around investing in our strategic growth imperatives, enhancing returns and delivering long-term shareholder value.”