LOW.US updates strategic planning and proposes the concept of "AI+Interior Decoration"
U.S. home improvement products retailer Lowe's (LOW.US) released its updated strategic plan and earnings guidance ahead of its 2024 Analyst and Investor Conference on Wednesday, introducing the concept of "AI+home improvement" in the home improvement industry. The U.S. home improvement retail giant also said it plans to provide detailed updates on its key growth metrics and productivity-boosting initiatives at the event.
CEO Marvin Ellison updated in a statement: "As we increasingly anticipate the expected recovery in the home improvement industry, we are investing to position the company for long-term performance growth." He added: "We are developing our 'whole-home strategy' to help our customers solve their whole-home improvement needs through more value and exceptional service."
The company's major new initiatives include a "AI framework" - Lowe's proprietary "AI+home improvement" service framework to fully enhance customers' home improvement shopping experience, and leverage the "AI framework" to strengthen the first full product type market in the U.S. home improvement industry.
CEO Ellison also noted Lowe's is building a strong expansion momentum with Pros as the company now penetrates the Pros field at an unexpected 30%.
On the earnings outlook front, the most significant new content is the store growth expectation, Lowe's plans to open 10 to 15 Lowe's retail stores annually in the U.S. home improvement market, which is growing rapidly, to expand its footprint and attract new DIY and professional home improvement customers.
Lowe's confirmed its full-year sales total of $83 billion to $83.5 billion in 2024, with comparable sales expected to decline 3.0% to 3.5%, and adjusted operating profit margin is expected to be approximately 12.3% to 12.4%, and the latest full-year adjusted diluted EPS range of $11.80 to $11.90, which is in line with Wall Street analysts' consensus.
On the stock price front, Lowe's shares have risen about 31% so far this year, outperforming the S&P 500.