Lowe’s 2016 Investor Meeting: Never Stop Improving

Executive Summary

• Lowe’s held an investor meeting on December 7, two years after its last investor meeting. The major themes of the meeting were steady evolution to adapt to customers’ needs and investment in future growth opportunities.
• The company’s strategic priorities are to: expand home improvement reach to drive profitable share gains; further adapt to the customer, developing capabilities to anticipate and support his or her needs; and generate long-term profitable growth and substantial returns for shareholders.
• In customer relationships, the company plans to expand its home-improvement reach and further adapt to the customer to differentiate itself; empower customers throughout their project journeys; invest to deliver a differentiated experience; and leverage advanced analytics and use data-driven insights to relieve project pain points and influence project decisions.
• On the operations side, the company continues to invest to deliver an outstanding experience as well as superior customer service. It is empowering associates with digital assets, as well as improving operational efficiencies.
• In terms of development, the company has also expanded its geographic and customer reach with the acquisition of Orchard Supply Hardware and RONA, is seeing improved results in Mexico and is expanding its customer reach and capabilities in Canada.
• Lowe’s reiterated its financial guidance for the year; medium-term financial goals for 2017–2019 are 4% average revenue growth, resulting in 15% annual adjusted EPS growth, which is expected to create about $14 billion of cash to be returned to shareholders during this period.