Weather
The Pine Tree, News for Calaveras County and Beyond Weather
Amador Angels Camp Arnold Bear Valley Copperopolis Murphys San Andreas Valley Springs Moke Hill/West Point Tuolumne
News
Business Directory
Weather & Roads
Sports
Real Estate
Search
Weekly & Grocery Ads
Entertainment
Life & Style
Government
Law Enforcement
Business
Wine News
Health & Fitness
Home & Garden
Food & Dining
Religion & Faith
Frogtown USA
Legal Notices
Calendar
Polls
Columns
Free Classifieds
Letters to the Editor
Obituaries
About Us

Coming Soon...
Saturday, Dec 15
All Day 10th Annual Production of Studio 4 Dance Theater’s “The Nutcracker,” December 13-15, 2018 at
Until 08:00 AM The Nutcracker 2018
09:00 AM Breakfast with Santa 2018 at Ironstone Vineyards
10:00 AM Old Timers Museum Walking Tours Are Every Saturday at 10am.
11:00 AM Guided Tours of Ironstone Vineyards
11:00 AM Town Tours of Columbia State Historic Park
03:00 PM Columbia College’s Symphony of the Sierra on December 15th
04:30 PM THE POLAR EXPRESS™ Train Rides Continue on at Railtown 1897
06:00 PM A Twisted Family Christmas at Twisted Oak
07:00 PM 15th Annual WinterSports History Night
07:00 PM Big Holiday Laughs: Inspecting Carol’ at Murphys Creek Theatre
Sunday, Dec 16
07:30 AM All You Can Eat Pancake Breakfast by Native Sons of the Golden West
11:00 AM Sunday Funday at Ironstone Vineyards
11:00 AM Guided Tours of Ironstone Vineyards
11:00 AM Town Tours of Columbia State Historic Park
02:00 PM Big Holiday Laughs: Inspecting Carol’ at Murphys Creek Theatre
04:30 PM THE POLAR EXPRESS™ Train Rides Continue on at Railtown 1897
Tuesday, Dec 18
10:00 AM A Plan 4 Me December...Living with Loss & Healthy Cooking
06:30 PM A Camp Fire Christmas in San Andreas on December 21st
Wednesday, Dec 19
11:00 AM Guided Tours of Ironstone Vineyards
Thursday, Dec 20
11:00 AM Guided Tours of Ironstone Vineyards
Friday, Dec 21
05:30 PM Friday Night Music at Alchemy
Saturday, Dec 22
10:00 AM Old Timers Museum Walking Tours Are Every Saturday at 10am.
11:00 AM Guided Tours of Ironstone Vineyards
11:00 AM Town Tours of Columbia State Historic Park
07:00 PM Big Holiday Laughs: Inspecting Carol’ at Murphys Creek Theatre
Sunday, Dec 23
11:00 AM Sunday Funday at Ironstone Vineyards
11:00 AM Guided Tours of Ironstone Vineyards
11:00 AM Town Tours of Columbia State Historic Park
Monday, Dec 24
All Day Let CAMPS Do The Dirty Dishes This Christmas Eve!
Wednesday, Dec 26
11:00 AM Guided Tours of Ironstone Vineyards
Thursday, Dec 27
11:00 AM Guided Tours of Ironstone Vineyards
Friday, Dec 28
11:00 AM Guided Tours of Ironstone Vineyards
05:30 PM Friday Night Music at Alchemy

Search Announcements




Log In
Username

Password

Remember Me



Posted by: thepinetree on 08/23/2018 11:30 AM Updated by: thepinetree on 08/23/2018 11:30 AM
Expires: 01/01/2023 12:00 AM
:

Lowe’s Reports Second Quarter Earnings Results & Announces Closing of All Orchard Supply Hardware Stores

Mooresville, NC...Lowe’s Companies, Inc. (NYSE: LOW) today reported net earnings of $1.5 billion and diluted earnings per share of $1.86 for the quarter ended Aug. 3, 2018, which included non-cash pre-tax charges of $230 million further described below, compared to net earnings of $1.4 billion and diluted earnings per share of $1.68 in the second quarter of 2017. Excluding the impact of these charges, adjusted diluted earnings per share1 increased 31.8 percent to $2.07 from adjusted diluted earnings per share1 of $1.57 in the second quarter of 2017.





The $230 million non-cash pre-tax charges referenced above resulted from the company’s strategic reassessment of Orchard Supply Hardware, which led to long-lived asset impairments and discontinued projects during the second quarter and a decision by the company on Aug. 17, 2018, to exit these operations in order to focus on its core home improvement business. The company expects to close all 99 Orchard Supply Hardware stores, which are located in California, Oregon and Florida, as well as the distribution facility that services those stores by the end of fiscal 2018. To facilitate an orderly wind-down, the company intends to conduct store closing sales and has partnered with Hilco Merchant Services to help manage the process and ensure a seamless experience for customers. Additional pre-tax costs of $390 to $475 million related to lease obligations, accelerated depreciation and amortization, and severance obligations are expected to be incurred in the second half of fiscal 2018, and have been reflected in the company’s updated business outlook.

Sales for the second quarter increased 7.1 percent to $20.9 billion over the second quarter of 2017, and comparable sales increased 5.2 percent. Comparable sales for the U.S. home improvement business increased 5.3 percent for the second quarter.

As a result of the new revenue recognition accounting standard ASU No. 2014-09 adopted in the first quarter of 2018, the company reclassified certain items within operating income. This change resulted in an increase to sales of approximately $140 million in the second quarter, driven primarily by the reclassification of the profit sharing income from the company’s proprietary credit program from selling, general and administrative expense. This accounting standard has no impact on comparable sales or diluted earnings per share. It was adopted on a modified retrospective basis, therefore the prior year has not been adjusted.

“We posted solid results this quarter by capitalizing on delayed spring demand,” commented Marvin R. Ellison, Lowe’s president and CEO. “We are committed to driving even stronger performance in the future by sharpening our focus on retail fundamentals and by limiting any projects and initiatives that take us away from our core mission of being a great omni-channel home improvement retailer. I would like to thank our associates for their hard work and commitment to the company.

“While it was a necessary business decision to exit Orchard Supply Hardware, decisions that impact our people are never easy. We will be providing outplacement services for impacted associates, and they will be given priority status if they choose to apply for other Lowe’s positions,” Ellison added.

“In addition to the decision to exit Orchard Supply Hardware, we are developing plans to aggressively rationalize store inventory, reducing lower-performing inventory while investing in increased depth of high velocity items. Exiting Orchard Supply Hardware and rationalizing inventory are the driving force behind the changes to Lowe’s Business Outlook.” Ellison continued. “Our strategic reassessment is ongoing as we evaluate the productivity of our real estate portfolio and non-retail business investments. We will update you on the changes to our strategy at the upcoming analyst and investor conference in December.”

Delivering on its commitment to return excess cash to shareholders, the company repurchased $1.1 billion of stock under its share repurchase program and paid $338 million in dividends in the second quarter.

As of Aug. 3, 2018, Lowe’s operated 2,155 home improvement and hardware stores in the United States, Canada and Mexico representing 215.3 million square feet of retail selling space.

A conference call to discuss second quarter 2018 operating results is scheduled for today (Wednesday, Aug. 22) at 9:00 am ET. The conference call will be available by webcast and can be accessed by visiting Lowe’s website at www.Lowes.com/investor and clicking on Lowe’s Second Quarter 2018 Earnings Conference Call Webcast. Supplemental slides will be available fifteen minutes prior to the start of the conference call. A replay of the call will be archived on Lowes.com/investor until November 19, 2018.

Lowe’s Business Outlook

In addition to the decision to exit Orchard Supply Hardware, the company is developing plans to aggressively rationalize its store inventory, reducing lower-performing inventory while investing in increased depth of high velocity items. Potential impacts of these actions have been reflected in Lowe’s business outlook.

Fiscal Year 2018 (comparisons to fiscal year 2017; based on U.S. GAAP)

Total sales are expected to increase approximately 4.5 percent.
Comparable sales are expected to increase approximately 3 percent.
The company expects to add approximately 9 home improvement stores.
Operating income as a percentage of sales (operating margin) is expected to decrease approximately 180 basis points2, including the $230 million non-cash charges recorded in the second quarter of fiscal 2018 and $390 to $475 million in additional costs expected to be incurred in the second half of fiscal 2018 as a result of the decision to exit Orchard Supply Hardware.
The effective income tax rate is expected to be approximately 25%.
Diluted earnings per share of $4.50 to $4.60 are expected for the fiscal year ending Feb. 1, 2019.
1 Adjusted diluted earnings per share is a non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures Reconciliation” section of this release for additional information as well as a reconciliation between the Company’s GAAP and non-GAAP financial results.

2 Includes 4 basis point net negative impact from the gain on the sale of the company’s interest in its Australian joint venture (2Q 2017) and the one-time bonus paid to eligible hourly U.S. employees (4Q 2017).

Disclosure Regarding Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as “believe”, “expect”, “anticipate”, “plan”, “desire”, “project”, “estimate”, “intend”, “will”, “should”, “could”, “would”, “may”, “strategy”, “potential”, “opportunity” and similar expressions are forward-looking statements. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties. Forward-looking statements include, but are not limited to, statements about future financial and operating results, Lowe’s plans, objectives, business outlook, priorities, expectations and intentions, expectations for sales growth, comparable sales, earnings and performance, shareholder value, capital expenditures, cash flows, the housing market, the home improvement industry, demand for services, share repurchases, Lowe’s strategic initiatives, including those relating to acquisitions and dispositions by Lowe’s and the expected impact of such transactions on our strategic and operational plans and financial results, and any statement of an assumption underlying any of the foregoing and other statements that are not historical facts. Although we believe that the expectations, opinions, projections and comments reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and we can give no assurance that such statements will prove to be correct. Actual results may differ materially from those expressed or implied in such statements.

A wide variety of potential risks, uncertainties and other factors could materially affect our ability to achieve the results either expressed or implied by these forward-looking statements including, but not limited to, management and key personnel change, changes in general economic conditions, such as the rate of unemployment, interest rate and currency fluctuations, fuel and other energy costs, slower growth in personal income, changes in consumer spending, changes in the rate of housing turnover, the availability of consumer credit and of mortgage financing, inflation or deflation of commodity prices, and other factors that can negatively affect our customers, as well as our ability to: (i) respond to adverse trends in the housing industry, a reduced rate of growth in household formation, and slower rates of growth in housing renovation and repair activity, as well as uneven recovery in commercial building activity; (ii) secure, develop, and otherwise implement new technologies and processes necessary to realize the benefits of our strategic initiatives focused on omni-channel sales and marketing presence and enhance our efficiency, and otherwise successfully execute on our strategy and implement our strategic initiatives, including acquisitions and dispositions; (iii) attract, train, and retain highly-qualified associates; (iv) manage our business effectively as we adapt our operating model to meet the changing expectations of our customers; (v) maintain, improve, upgrade and protect our critical information systems from data security breaches, ransomware and other cyber threats; (vi) respond to fluctuations in the prices and availability of services, supplies, and products; (vii) respond to the growth and impact of competition; (viii) address changes in existing or new laws or regulations that affect consumer credit, employment/labor, trade, product safety, transportation/logistics, energy costs, health care, tax or environmental issues; (ix) positively and effectively manage our public image and reputation and respond appropriately to unanticipated failures to maintain a high level of product and service quality that could result in a negative impact on customer confidence and adversely affect sales; and (x) effectively manage our relationships with selected suppliers of brand name products and key vendors and service providers, including third party installers. In addition, we could experience impairment losses and other charges if either the actual results of our operating stores are not consistent with the assumptions and judgments we have made in estimating future cash flows and determining asset fair values, or we are required to reduce the carrying amount of our investment in certain unconsolidated entities. With respect to acquisitions and dispositions, potential risks include the effect of such transactions on Lowe’s and the target company’s or operating business’s strategic relationships, operating results and businesses generally; our ability to integrate or divest personnel, labor models, financial, IT and other systems successfully; disruption of our ongoing business and distraction of management; hiring additional management and other critical personnel; increasing the scope, geographic diversity and complexity of our operations; significant integration or disposition costs or unknown liabilities; and failure to realize the expected benefits of the transaction. For more information about these and other risks and uncertainties that we are exposed to, you should read the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” included in our most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (the “SEC”) and the description of material changes thereto, if any, included in our Quarterly Reports on Form 10-Q or subsequent filings with the SEC.

The forward-looking statements contained in this news release are expressly qualified in their entirety by the foregoing cautionary statements. The foregoing list of important factors that may affect future results is not exhaustive. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. All such forward-looking statements are based upon data available as of the date of this release or other specified date and speak only as of such date. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf about any of the matters covered in this release are qualified by these cautionary statements and in the “Risk Factors” included in our most recent Annual Report on Form 10-K and the description of material changes thereto, if any, included in our Quarterly Reports on Form 10-Q or subsequent filings with the SEC. We expressly disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, change in circumstances, future events or otherwise, except as may be required by law.

Lowe’s Companies, Inc.

Lowe’s Companies, Inc. (NYSE: LOW) is a FORTUNE® 50 home improvement company serving more than 18 million customers a week in the United States, Canada and Mexico. With fiscal year 2017 sales of $68.6 billion, Lowe’s and its related businesses operate or service more than 2,390 home improvement and hardware stores and employ over 310,000 people. Founded in 1946 and based in Mooresville, N.C., Lowe’s supports the communities it serves through programs that focus on K-12 public education and community improvement projects. For more information, visit Lowes.com.


Comments - Make a comment
The comments are owned by the poster. We are not responsible for its content. We value free speech but remember this is a public forum and we hope that people would use common sense and decency. If you see an offensive comment please email us at news@thepinetree.net
No Subject
Posted on: 2018-08-23 13:18:40   By: Anonymous
 
all by design.

[Reply ]

    Re:
    Posted on: 2018-08-23 14:53:31   By: Anonymous
     
    Wow, over the years I received some very helpful advice from OSH associates. Lowes associates not knowledgeable so much.

    [Reply ]

      Re:
      Posted on: 2018-08-23 14:59:20   By: Anonymous
       
      They had the squishiest Bakalata one could find.

      [Reply ]

        Re:
        Posted on: 2018-08-23 19:43:07   By: Anonymous
         
        I liked her too.

        [Reply ]

      Re:
      Posted on: 2018-08-23 16:20:19   By: Anonymous
       
      Andy's across the street was the same idea - OSH and Lowes put them out of buisness. Soon enough there will just be StarSafeWalMartBucksWaySave

      [Reply ]

        Re:
        Posted on: 2018-08-23 16:56:42   By: Anonymous
         
        OSH one of my favorite stores....wonder when the big clearance sale starts. Should be some good stuff at a great price. Always helpful and knowledgeable.

        [Reply ]

          Re:
          Posted on: 2018-08-23 17:30:41   By: Anonymous
           
          They should focus on firearms, & all things gun-related.

          [Reply ]

            Re:
            Posted on: 2018-08-23 17:50:48   By: Anonymous
             
            Gloop!!!

            [Reply ]

              Re:
              Posted on: 2018-08-23 19:11:54   By: Anonymous
               


              F U GLOOP

              [Reply ]

                Re:
                Posted on: 2018-08-23 21:55:43   By: Anonymous
                 
                Relax, it's not The Gloop.

                [Reply ]

                  Re:
                  Posted on: 2018-08-24 07:16:20   By: Anonymous
                   
                  Yes I'm the new Gloop.

                  [Reply ]

    Re: All By Design
    Posted on: 2018-08-23 19:31:45   By: Anonymous
     
    And in time predator Lowe's will in its turn be kaput! Hope to see it soon, I don't like the outfit.

    [Reply ]

No Subject
Posted on: 2018-08-23 20:38:58   By: Anonymous
 
OSH could have been a viable hardware/tool store had the management people priced things alittle better for the consumer. Except for their holiday sales programs, they were always WAY OVER PRICED ! Bubye OSH. Lowes might hire the floor staff, but not the management bufoons !

[Reply ]

No Subject
Posted on: 2018-08-23 20:50:47   By: Anonymous
 
neva wood have happ need if them dam stupid dems didn’t shop at orchard h s. It is all ahiliary and Obama’s fault! So much loss cause the dirty lying libs and colors!

[Reply ]

    Re:
    Posted on: 2018-08-23 21:10:02   By: Anonymous
     
    I think most people forget everything you buy is sold online. Lazy folks buy things without getting out and about. If it’s not the right size, color send it back get a discount. All about the easy way out. Complicated. No just lazy way of thinking. Trying time for a honest store. Sorry for the next up coming gender fluids. Get use to it. Pretty soon men will all have to pee sitting down.

    [Reply ]

      Re:
      Posted on: 2018-08-23 21:59:49   By: Anonymous
       
      ^ Mexican food doesn't help.

      [Reply ]

      Re:
      Posted on: 2018-08-24 05:43:45   By: Anonymous
       
      if you have no legs you have no choice but to sit down to pee.

      thought for the day.

      [Reply ]

        Original OSH Was Great.
        Posted on: 2018-08-24 09:06:20   By: Anonymous
         
        Before it was sold to Sears, OSH had a great supply of all plumbing fittings, tools, had knowledgeable staff, the old way a hardware store was.
        Then the buy outs started, as usual the store went downhill, filled with consumer items, the diversifies hardware left, it became just another mindless consumer outlet. Andy's too was great, but the good goes in this society run by the mega corps.

        [Reply ]

No Subject
Posted on: 2018-08-24 17:02:03   By: Anonymous
 
The same CEO that killed Sears has now killed OSH. Too small to benefit parent company Loewes, but too big to make it on its own. I have been a customer for over 50 years, but now my options have been reduced to the major big box stores. Thanks, Trump.

[Reply ]


What's Related
These might interest you as well
Photo Albums

Local News

phpws Business Directory

Calendar


Mark Twain Medical Center
Meadowmont Pharmacy
Bank of Stockton
Bear Valley Real Estate
Bear Valley Cross Country
Cedar Creek Realty
Cave, Mine & Zip Lines
Fox Security
Bistro Espresso
Pinnacle Physical Therapy
Chatom Winery
Middleton's Furniture
Bear Valley Mountain Resort
Paul D. Bertini
Premier Properties
High Country Spa & Stove
Sierra Logging Museum
Calaveras Mentoriing

Ebbetts Pass Scenic Byway
Sierra Logging Museum
Jenny's Kitchen

Copyright © The Pine Tree 2005-2018