Lowe's Reaffirms Outlook For FY 2015, Expects To Reach An ROI Of 17% By 2017

BZ NOTE: Press Release: Lowe's Companies, Inc.

meets today with analysts and investors in Mooresville, North Carolina to discuss its strategic priorities and long-term financial targets. Lowe's Companies, Inc. Logo. Lowe's Enterprise Objectives "We're at a great point in our company's evolution. The housing market and broader economy are recovering just as our transformation is gaining momentum," commented Robert A. Niblock, Lowe's chairman, president and CEO. "We're building on our past success and finding new ways to serve and connect with customers." Today's presentations will include the company's plans to: o Enhance its relevance to customers through omni-channel retailing o Differentiate itself through better customer experiences o Adapt to a changing home improvement landscape o Deliver long-term profitable growth and substantial returns for shareholders "We continue to generate solid cash flow and have exciting opportunities ahead of us," commented Robert F. Hull, Jr., Lowe's CFO. "Return on Invested Capital is expected to reach approximately 19 percent by 2017, an increase of almost 500 basis points over the next three years." Today, Lowe's also reiterated its prior sales and earnings guidance for the 2014 fiscal year, which was provided in its November 19, 2014 earnings release. Lowe's Business Outlook Fiscal Year 2014 (comparisons to fiscal year 2013; based on U.S. GAAP unless otherwise noted) o Total sales are expected to increase 4.5 to 5 percent. o Comparable sales are expected to increase 3.5 to 4 percent. o The company expects to open 6 home improvement and 4 hardware stores. o Earnings before interest and taxes as a percentage of sales (operating margin) are expected to increase 70 to 75 basis points. o The effective income tax rate is expected to be approximately 37.2%. o Diluted earnings per share of approximately $2.68 are expected for the fiscal year ending January 30, 2015. A webcast of this conference is scheduled for today (Thursday, December 11) at 10:00 am ET. The webcast can be accessed by visiting Lowe's website at www.Lowes.com/investor, clicking on Webcasts and then on Lowe's 2014 Analyst & Investor Conference Webcast. A replay of the webcast will be archived on Lowes.com/investor until the next Analyst and Investor Conference.