Company Reiterates Guidance for Fiscal 2011
“Moreover, our strong financial position and cash flow allow us to invest in this transformational effort. These investments are part of a disciplined capital allocation strategy, and we are committed to returning excess cash to shareholders through dividends and our share repurchase program,” Niblock concluded.
During the investor conference, senior Lowe's executives will focus on the strategic investments and critical decisions made in 2011 that position the company for success and will update its long-term financial targets. Highlights of the presentations include:
Thomas J. Lamb , senior vice president of marketing and advertising: “We will lead customers through the journey of home improvement, from inspiration and planning to completion and enjoyment. We will do it, project after project, over the course of their home improvement lifetime, and we will know them well enough to anticipate their needs, helping them manage their homes as a neighbor, not merely as a supplier.”Robert J. Gfeller , Jr., executive vice president of merchandising: “While customers seek good prices, they also expect high quality and innovation. Currently, most customers do not perceive a high level of differentiation in the home improvement sector. This creates a great opportunity for Lowe’s.”Rick D. Damron , executive vice president of store operations: “This was the year we made the tough decisions and the right investments to better position ourselves to execute well in the near-term and carry our company into the future. We strive to provide customers with a differentiated experience, one that is simple and optimized across selling channels.”Robert F. Hull , Jr., executive vice president and CFO: “Our goal is to drive return on invested capital by growing profits faster than sales and sales faster than assets. In doing this, we expect to generate strong free cash flow and return significant capital to shareholders.”
Today, Lowe’s also reiterated its prior sales and earnings guidance for
the 2011 fiscal year, which was provided in its
Lowe’s Business Outlook
Fiscal Year 2011 – a 53-week year (comparisons to fiscal year 2010 – a 52-week year)
- Total sales are expected to increase 2 to 3 percent, including the 53rd week
- The 53rd week is expected to increase total sales by approximately 1.5 percent
- The company expects comparable store sales to decline approximately 1 percent
- The company expects to open approximately 25 stores in 2011
- Earnings before interest and taxes as a percentage of sales (operating margin) are expected to decrease 80 to 90 basis points, which includes approximately 80 basis points impact from charges associated with store closings and discontinued projects
-
Depreciation expense is expected to be approximately
$1.5 billion -
Diluted earnings per share of
$1.37 to$1.40 are expected for the fiscal year endingFebruary 3, 2012 , which includes approximately$0.20 per share impact from changes associated with store closings and discontinued projects
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 2010 sales of
Lowe’s
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Source: Lowe’s