Lowe’s outlines new strategy to capture market share; sales to grow by 22% this year

Lowe’s Cos. unveiled a new “total home” strategy designed to gain share in the $900 billion home improvement market and drive bigger sales in the pro-business, e-commerce and installation services.

"At Lowe's we will be committed to offering everything a homeowner needs to provide a 'total home solution' across every area in the home,” stated Marvin Ellison, Lowe's president and CEO. “This includes products and services for everything needed to repair and improve the home, for DIY and pro customers alike, across all décor categories including paint, as well as simple and complex installations.”

Ellison continued, “Our Total Home strategy will enhance customer engagement and grow market share by intensifying our focus on the pro customer, expanding our online business, modernizing installation services, improving localization efforts and elevating our product assortment."

At its investor conference, the home improvement retailer reiterated its outlook, saying it expects sales to grow by about 22% this year with a comparable sales increase of 23%.  After adjustments, Lowe’s forecast earnings of $8.62 to $8.72 per share in fiscal 2020.

“Our commitment to retail fundamentals has been essential to our 2020 financial success,” Ellison said at the conference. “Our supply chain, in-store and digital systems would have collapsed under the weight of the unprecedented customer demand created by the pandemic without this focus.”

Additionally, Lowe’s reported that its board of directors has authorized a new $15 billion common stock repurchase program.  This new repurchase program has no expiration date and adds to the previous program's balance, which was $4.7 billion as of December 8, 2020.