In the news release, Lowe's Announces Growth Strategies at 2007
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Lowe's Announces Growth Strategies at 2007
--Discusses Outlook for Second Half of Fiscal 2007 --
-- Provides Outlook for 2008 through 2010 --
(Logo: http://www.newscom.com/cgi-bin/prnh/20031205/LOWLOGO )
In an update to the company's business outlook,
"Even as we face easier prior year sales comparisons as we progress
through the year, many uncertainties remain, and it seems prudent to further
temper our sales and earnings outlook," commented
"External pressures weigh on our near-term performance, but looking past the current cycle, we see many opportunities for continued sales and earnings growth and increasing cash flow from operations," said Hull. "For the three year period, total sales are expected to increase between 8 and 11 percent per year, while earnings per share are expected to average 12 to 15 percent growth per year across the three years. Improving earnings and solid working capital management will drive compound annual growth in cash flow from operations of approximately 15 percent. The current pressures will likely continue into 2008, so we expect our earnings performance to improve from mid-single digit growth in 2008 to high-teens in 2010," Hull concluded.
During the conference,
--Gregory M. Bridgeford , executive vice president of business development: "Lowe's is well positioned to capitalize on a large and fragmented industry to continue our growth. A major component of our organic growth plan is to layer new revenue streams on our existing store base by understanding the changing needs of home improvement customers, developing product and service solutions to meet those needs, and crafting these differentiating customer proposals into profitable business models." --Larry D. Stone , president and chief operating officer: "Lowe's culture, values and obsession with customer service position us to be the customer's first choice in home improvement. These points of difference are demonstrated to customers through our clean, well-lit stores, innovative products and brand marketing efforts that resonate with customers. We will continue to capitalize on these competitive advantages to better serve customers and to grow profitably." --Charles W. (Nick) Canter , executive vice president of merchandising: "In Lowe's Merchandising organization, we constantly work to ensure everything we conceive, build and execute is viewed from a customer's point of view. We're simplifying the shopping experience by providing great sets with innovative products, informative signage and easy to read product packaging, while at the same time ensuring those sets are operationally efficient for our stores. We're confident we're positioned to capitalize on market share opportunities in every category and in every market." --Joseph M. (Mike) Mabry Jr. , executive vice president of logistics and distribution: "Our industry-leading logistics and distribution infrastructure continues to evolve to support growth, improve service to our stores and drive profitability. We continue to drive efficiencies by building upon our solid foundation with a new demand planning system. This recently implemented platform further leverages our distribution network, enables us to quickly respond to changes in market conditions and improves service to our stores with better in- stock positions." --Michael K. Brown , executive vice president of store operations: "Our continued focus on our operational strategies positions us to improve customer service in each of our stores and to grow market share. With enhanced sales forecasting and labor scheduling at the store level, we'll work to ensure we have knowledgeable sales people in the aisles taking care of customers. Lowe's Building Blocks for Success provide a business plan that serves our stores well regardless of the macro economic environment."
This news release includes "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995 (the "Act").
Statements of the company's expectations for sales growth, comparable store
sales, earnings and performance, capital expenditures, store openings, the
housing market, demand for services, and any statement of an assumption
underlying any of the foregoing, constitute "forward-looking statements" under
the Act. Although the company believes that the expectations, opinions,
projections, and comments reflected in its forward-looking statements are
reasonable, it can give no assurance that such statements will prove to be
correct. A wide-variety of potential risks, uncertainties, and other factors
could materially affect our ability to achieve the results expressed or
implied by our forward-looking statements including, but not limited to,
changes in general economic conditions, such as interest rate and currency
fluctuations, fuel and other energy costs, slower growth in personal income,
the availability of mortgage financing and other factors which can negatively
affect our customers as well as our ability to: (i) respond to decreases in
the number of new housing starts and the level of repairs, remodeling, and
additions to existing homes, as well as general reduction in commercial
building activity; (ii) secure, develop, and otherwise implement new
technologies and processes designed to enhance our efficiency and
competitiveness; (iii) attract, train, and retain highly-qualified associates;
(iv) locate, secure, and develop new sites for store development; (v) respond
to fluctuations in the prices and availability of services, supplies, and
products; (vi) respond to the growth and impact of competition; (vii) address
legal and regulatory matters; and (viii) respond to unanticipated weather
conditions. For more information about these and other risks and
uncertainties that we are exposed to, you should read the "Risk Factors"
included in our Annual Report on Form 10-K to the
The forward-looking statements contained in this news release speak only as of the date of this release and the company does not assume any obligation to update any such statements.
With fiscal year 2006 sales of
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