Lowe's Cos. (LOW) Affirms FY16 Outlook into Analyst, Investor Meeting

Lowe's Companies, Inc. (NYSE: LOW) meets today with analysts and investors in Mooresville, North Carolina to discuss its strategic priorities and long-term financial targets.

Lowe's Enterprise Objectives

"We're focused on evolving our business to further drive trust and loyalty by empowering customers throughout their project journey. Our customers take great pride in their homes and we are equally proud to be the first stop for their home improvement projects," commented Robert A. Niblock, Lowe's chairman, president and CEO. "We're building on our past success and adapting to meet the needs of a changing customer."

Today's presentations will include the company's plans to:

• Expand home improvement reach to drive profitable share gains
• Further adapt to the customer, developing capabilities to anticipate and support their needs
• Generate long-term profitable growth and substantial returns for shareholders

"We continue to generate solid cash flow and deliver substantial returns for our shareholders," commented Robert F. Hull, Jr., Lowe's CFO. "Return on Invested Capital is expected to exceed 22 percent by 2019, an increase of more than 500 basis points over the next three years."

Today, Lowe's also reiterates its prior sales and earnings guidance for the 2016 fiscal year, which was provided in its Nov. 16, 2016 earnings release.

"We are pleased with our performance quarter-to-date, including the holiday season, and remain confident in our Business Outlook," Hull added.

Lowe's Business Outlook

Fiscal Year 2016 -- a 53-week Year (comparisons to fiscal year 2015 -- a 52-week year; based on U.S. GAAP)

• Total sales are expected to increase 9 to 10 percent, including the 53rd week
• The 53rd week is expected to increase total sales by approximately 1.5 percent
• Comparable sales are expected to increase 3 to 4 percent
• The company expects to add approximately 40 home improvement and hardware stores.
• Earnings before interest and taxes as a percentage of sales (operating margin) are expected to increase approximately 65 basis points.1
• The effective income tax rate is expected to be approximately 40.1%.
• Diluted earnings per share of approximately $3.521 are expected for the fiscal year ending February 3, 2017.

1 Includes the net gain on the settlement of the foreign currency hedge entered into in advance of the company's acquisition of RONA(1Q 2016 and 2Q 2016) and the impact of non-cash charges associated with the joint venture with Woolworths in Australia (4Q 2015 and 3Q2016), the project write-offs that were a part of the ongoing review of the company's strategic initiatives (3Q2016), and the goodwill and long-lived asset impairment charges associated with the company's Orchard Supply Hardware operations (3Q2016).

A webcast of this conference is scheduled for today (Wednesday, Dec. 7) 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 2016 Analyst & Investor Conference Webcast. A replay of the webcast will be archived on Lowes.com/investor until the next Analyst and Investor Conference.

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