Lowe’s authorizes $15 billion share buyback program

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Lowe’s Cos. announced a new $15 billion share buyback program ahead of the do-it-yourself home retailer’s virtual investor event on Wednesday. The new program adds to the previous one, which had a balance of $4.7 billion as of Dec. 8. Lowe’s also introduced its “Total Home” strategy to grow the business. “Our Total Home strategy will enhance customer engagement and grow market share by intensifying our focus on the Pro customer, expanding our online business, modernizing installation services, improving localization efforts and elevating our product assortment,” said Marvin Ellison, Lowe’s chief executive, in a statement. Lowe’s also reiterated its full-year 2020 guidance for sales growth of 22%, comparable sales growth of 23%, earnings per share of $7.53 to $7.63 and adjusted EPS of $8.62 to $8.72. The FactSet consensus is for fiscal-year sales growth of 22.1%, comparable sales growth of 24.2% and EPS of $8.70. Lowe’s stock rose nearly 4% in Wednesday premarket trading, and has rallied 26.3% for the year to date. The S&P 500 index has gained 14.6% for 2020 so far.
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