-- Company Reiterates Guidance for Fiscal 2010 --
Today,
"Over the past few years, we have faced an uncertain housing
environment, an uncertain consumer and a declining industry. Over the
same period, we have also seen customer expectations intensify,"
commented
"In no way are we stepping away from the retail operations that are the foundation of our success, but we recognize that the store experience alone is not enough for customers today," Niblock concluded.
During the conference,
-- Gregory M. Bridgeford , executive vice president of business
development:"We will not be satisfied in simply holding our position as
a big box home improvement retailer. We intend to define our future, and
that future is focused on serving the evolving needs of consumers in
ways that we understand and can address better than anyone in home
improvement."
-- Larry D. Stone , president and chief operating officer:"We have reached
another point in our lifecycle where we must adapt to maintain our
growth in the home improvement business. Our entire organization is
focused on making the promise of a better, more seamless customer
experience a reality."
-- Robert F. Hull, Jr. , executive vice president and CFO:"Our future
prosperity is not tied to a robust recovery in housing or the home
improvement market. We are focused on making our operating model more
efficient to grow profits faster than sales, and we are leveraging
productivity measures to ensure that we grow sales faster than assets.
We are focused on transforming our business and driving return on
invested capital."
Lowe's Business Outlook
Fiscal Year 2010 (comparisons to fiscal year 2009)
-- The company expects to open approximately 42 stores in 2010 reflecting
total square footage growth of approximately 2 percent
-- Total sales are expected to increase 3 to 4 percent
-- The company expects comparable store sales to increase 1 to 2 percent
-- Earnings before interest and taxes as a percentage of sales (operating
margin) is expected to increase 50 to 60 basis points
-- Depreciation expense is expected to be approximately $1.60 billion
-- Diluted earnings per share of $1.37 to $1.40 are expected for the fiscal
year ending January 28, 2011
A webcast of this conference is scheduled for today (
Disclosure Regarding Forward-Looking Statements
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, the home improvement industry,
demand for services, share repurchases 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 continued high rates of
unemployment, interest rate and currency fluctuations, higher fuel and
other energy costs, slower growth in personal income, changes in
consumer spending, changes in the rate of housing turnover, the
availability and increasing regulation of consumer credit and of
mortgage financing, inflation or deflation of commodity prices and other
factors which can negatively affect our customers, as well as our
ability to: (i) respond to adverse trends in the housing industry, such
as the psychological effects of falling home prices, and in the level of
repairs, remodeling, and additions to existing homes, as well as a
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
successfully develop new sites for store development particularly in
major metropolitan markets; (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 changes in existing
or new laws or regulations that affect consumer credit,
employment/labor, trade, product safety, transportation/logistics,
energy costs, health care, tax or environmental issues; and (viii)
respond to unanticipated weather conditions that could adversely affect
sales. In addition, we could experience additional impairment losses if
the actual results of our operating stores are not consistent with the
assumptions and judgments we have made in estimating future cash flows
and determining asset fair values. For more information about these and
other risks and uncertainties that we are exposed to, you should read
the "Risk Factors" and "Critical Accounting Policies and Estimates"
included in our Annual Report on Form 10-K to the
The forward-looking statements contained in this news release are based
upon data available as of the date of this release or other specified
date and speak only as of such date. All subsequent written and oral
forward-looking statements attributable to us or any person acting on
our behalf about any of the matters covered in this release are
qualified by these cautionary statements and in the "Risk Factors"
included in our Annual Report on Form 10-K to the
With fiscal year 2009 sales of
Source: Lowe's Companies , Inc.