Lowe’s outlines growth strategy, reaffirms 2024 guidance

MOORESVILLE, N.C. – Lowe’s Companies, Inc. (NYSE: NYSE:) today shared its strategic initiatives and financial objectives during its 2024 Analyst and Investor Conference, emphasizing its commitment to long-term growth and productivity. The company discussed its 2025 Total (EPA:) Home Strategy, which includes a focus on driving Pro Penetration, accelerating online sales, expanding home services, creating a loyalty ecosystem, and increasing space productivity.

In line with these initiatives, Lowe’s announced the development of a new AI framework intended to enhance customer experience and improve productivity. This technology is expected to provide innovative solutions in partnership with tech companies such as NVIDIA (NASDAQ:), OpenAI, and Palantir (NASDAQ:). The retailer is piloting AI solutions that will enable frontline associates to better serve customers and enhance the in-store shopping experience.

Additionally, Lowe’s is launching the first product marketplace in the U.S. home improvement industry, aiming to offer a broader selection of products online without the need to manage inventory or invest in new fulfillment centers. This move is designed to solidify Lowe’s as a comprehensive destination for home improvement needs.

The company also revealed plans to relaunch its Pro loyalty program as MyLowe’s Pro Rewards in early 2025, offering enhanced benefits and savings for Pro customers. The new program will consolidate DIY and Pro loyalty programs into one ecosystem, simplifying the rewards system for customers.

To further cater to professional customers, Lowe’s is launching Pro Extended Aisle, which will provide a seamless solution for large, special Pro orders, including jobsite and rooftop delivery.

On the expansion front, Lowe’s plans to open 10-15 new stores annually in the coming years in rapidly growing U.S. markets. The company also intends to extend its rural offering to 150 additional stores, which will bring the total rural store count to nearly 500, offering a wider range of products to meet the needs of customers in these areas.

A financial update was provided, detailing scenario planning for the company’s 2025 performance and outlining new Perpetual Productivity Improvement initiatives expected to generate around $1 billion in annual cost savings.

Lowe’s reaffirmed its full-year 2024 outlook, projecting total sales between $83.0 and $83.5 billion, with comparable sales expected to decline by -3.0% to -3.5%. Adjusted operating margin is forecasted to be 12.3% to 12.4%, with adjusted diluted earnings per share between $11.80 and $11.90.

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